SunTrust Bank is currently working with the Taiwan Export-Import Bank to offer lower rate financing for U.S. importers of Taiwanese manufactured capital goods, GlobalFax learned last week.
“SunTrust is the first bank with which the Ex-Im bank has made such an arrangement in the Southeast,” David T. H. Wang, director of the Taipei Economic and Cultural Office’s commercial division in Atlanta, said in an interview. “We hope that this arrangement will be able to aid U.S. importers with sourcing their durable products. For example, importers will now be able to take advantage of extended payment options as well as longer post sales service support for durable products.”
According to Mr. Wang, SunTrust now can offer lower fixed rates because of the new arrangement. These loans, he said, may be for six months to five years.
He also said that borrowers would now be able to select a semi-annual payment schedule with no prepayment penalties as long as the credit from the Ex-Im Bank does not exceed 85% of the value of the goods.
The loans may only be made, however, for capital goods that are approved by the Ex-Im Bank, Mr. Wang said, including computer equipment, medical machinery, transportation equipment and other items.
Under the arrangement, the importer needs only to apply for normal credit approval, but the Taiwan content of the goods must be valued at more than 50% of their cost.
Mr. Wang may be reached by calling (404) 892-5095 or send an e-mail to email@example.com