Summary Program

Customer Benefits

Financing provided by EnviroTech Financial benefits foreign buyers by making it unnecessary for them to use pre-existing credit facilities when purchasing your products or equipment. Our financing programs also provide more attractive financing on better terms and conditions than alternatives such as letters of credit, credit lines and borrowing from financial sources in their own country that may carry very high interest rates and costs.

Eligible Exports

Non-military products (consumer or commercial) and equipment in which U.S. content is not less than 50%. See attached description of the variety of exportable equipment and products.

Pricing

Costs associated with each transaction are very small and are usually tailored to meet the needs of both you and the foreign buyer. We can include any transactional costs in the financing agreement and therefore, there are no out-of-pocket costs to either you or the foreign buyer.

Buyer Down Payment

On short term credits such as for the financing of an order for products or services (1-6 months repayment), there is no down payment required. For the financing of equipment and machinery over longer terms of two to five years (seven years on environmental equipment), there is a 15% down payment requirement. That 15% can include other costs associated with the transaction such as site preparation, engineering, spare parts, installation, etc. and does not need to be paid directly to us. Therefore, the transaction can be treated as a “project finance”—greatly expanding your ability to beat your competition.

Closing Costs

All closing costs can be included in the financed amount with the exception of the credit application fee that must be paid prior to our processing the credit request.

A credit application fee (see table)

A transaction fee based upon the size of the order

An exposure fee based on country risk

Financing fee based upon how long the customer wants the credit extended

Required Information—Domestic Seller

The domestic seller must provide product and sales contract information necessary for EnviroTech Financial to complete a transaction. This would include detailed information on the product we are financing, brochures or engineering data, general corporate marketing information on your company and supporting shipping, packaging and insurance data required for the export documentation.

Required Information—Foreign Buyer

The amount of historical financial information needed will vary depending on the size of each transaction. The larger the transaction, the more information that will be needed (see the buyer credit application information summary sheet). In all cases, a standard one page credit application and supporting general fact sheet is supplied to us along with an authorization for us to complete the credit investigation. We obtain the necessary supplier and bank reference ratings and order a credit report on the company.

If the transaction is large enough to require financial statements on the business, we will analyze the statements provided and ascertain the key financial ratios and ability to repay based on the historical cash flows of the company. Financial statements must be prepared substantially in accordance with generally or locally accepted accounting principles. It speeds up the process if the statements are in English, or accompanied by an official English translation.

Loan Documentation

EnviroTech Financial, Inc will prepare all required simple, standard form documents and have the applicant sign, date and return the documents, pro-forma invoices, etc to us. We will coordinate the flow of all shipping documents with you and the customer. We typically do not charge legal fees to do this. Once we have received the required documents, we will issue you our purchase order so that you may proceed with fulfilling the order.

The Funding Process

EnviroTech will process a complete foreign application in as short as seven business days. Very large transactions can take as long as 4-6 weeks. EnviroTech will issue a letter of offer on approval of an application according to the amount, terms and conditions negotiated with the foreign buyer that you may use to present to the foreign buyer. Upon acceptance by you and the foreign buyer of the offer, you will be given a written purchase order for the goods or equipment according to the signed agreements.

You will then produce or obtain the goods, issue us an invoice for the products, and have the order ready for inspection and/or shipment at your dock. We then pay you your invoice (as negotiated) directly. It is our responsibility to collect the payments from the foreign buyer pursuant to our invoice to them. We assume all financial risk of the transaction without any recourse to you. EnviroTech Financial only maintains recourse to you for the performance of the sales contract. Goods, services and equipment must have American content (material, labor, etc.) of at least 50% of the value.

Conclusion

EnviroTech Financial, Inc’s foreign trade credit financing programs is a unique complementary financing program to help you in providing competitive financing terms for your sales team—yielding increased export revenues.