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AG Trade Finance

 
AG Trade Finance is the module for the online processing of documentary Letters of Credit, and Collections in foreign units.

The AG trade finance module simplifies your documentary business by doing the following: simple entry of Import Letters of Credit, reducing errors with automatic plausibility checks, time saving with the copy function, online access to new incoming transactions and information, service available at any time or any place, save money through electronic exchange of messages, faster exchange of information between you and a bank, reporting function, and no additional software, no installation or maintenance.

Agricultural or AG Trade finance programs available in the United States for the public are:

Export Credit Guarantee Program, Supplier Credit Guarantee Program, and the Facility Guarantee Program.

The Export Credit Guarantee Program and the Intermediate Export Credit Guarantee Program underwrite credit extended by the private banking sector in the United States to approved foreign banks using dollar denominated, irrevocable letters of credit to pay for food and agricultural products sold to foreign buyers.

The Supplier Credit Guarantee Program or SCGP provides a guarantee, in the event of the importer's default, on a portion of a US exporter's open account receivable. United Stats exporters can purchase coverage for agricultural commodities or product sales where shot-term credit has been extended directly to the importer.

Finally, the Facility Guarantee Program, the last of the AG trade finance programs, provides credit guarantees for the sale of manufactured goods and services to enhance and establish agribusiness-related facilities overseas that primarily handle, store, distribute or process United States agricultural products and commodities.

A program available in Canada for AG trade finance is the Program for Export Market Development.

This program helps new exporters introduce their products and services and gives seasoned exporters the opportunity to explore new ones.

The program has 4 major elements:

1) The First Market Development Strategies contribute between $5,000 and $50,000 annually

2) Market Identification Visit or Participation in Trade Shows-the contribution for this reaches a maximum of $7,500

3) National or Major Non-Sales Industry or Trade Associations

4) Major Capital Projects-a contribution of between $5,000 and $50,000 to help Canadian manufacturing, engineering, construction, architecture and management consulting firms bid for major capital projects outside Canada.

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