TERM FINANCE
SOVEREIGN STAR provides fixed- rate medium- term loans to your foreign buyer. This loan is secured by a registered lien over the exported goods, and insured by the ECGD. This provides the buyer with a predictable repayment stream and does not disrupt their banking arrangements. Transactions can be offered on a "one off" basis or as bundled sales and are tailored to meet the needs of clients worldwide.
THE FUNDING PROCESS
SOVEREIGN STAR will process a complete application in ten business days, after which we will issue a letter of offer on approval of an application which may be presented by the exporter to their foreign buyer.
Upon evidence of receipt and acceptance of the product by the buyer, and duly completed agreement signed by the buyer and exporter, SOVEREIGN STAR will pay funds to the exporter directly and assume risk of the foreign buyer.
SOVEREIGN STAR will then collect the loan directly from the buyer.
COSTS TO THE UK EXPORTER
Non-refundable application fee of £200 + VAT.
COSTS TO THE FOREIGN BUYER
Loan interest at current competitive market interest rates based on SOVEREIGN STAR 's cost of funds and fixed for the term of sale.
An insurance premium is payable to SOVEREIGN STAR to cover ECGD insurance on each successful transaction. The rate is determined by ECGD and varies by country and buyer credit risk.
A front-end administration fee of 1.25% of the loan amount on each successful transaction payable to SOVEREIGN STAR, as well as all reasonable out-of-pocket costs, including legal fees.
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