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How does it work:
Credit approved customers will decide the time period they prefered (usually from 30 to 120 days from invoice date) and issue a purchase order (or sign a proforma invoice) for each account term operation. When the invoice is due they must wire the amount owed to the bank account specified by Midas Export USA Corp. Customers will pay 1.4% cost of export premium insurance plus 1.0% for each 30 days they require credit.
For example: a $10,000 cash invoice will have the following additional charges if bought with twelve months open account terms:
- Premium: 1.4% = $140.oo
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Interest Rate: 12 (months) x 1.0% = $1,363.oo
Total: $11,504.oo
Benefits:
This is a powerful tool to generate sales. In fact, the sponsored credit line does not require a collateral, exclusive for products with at least 51% of USA made content. It is significantly simpler than a letter of credit. Midas Export USA Corp. has a delegated authority to grant credits on a first time basis of $75,000.oo and up to $200,000.oo for subsequent credits. Some customers may apply for significantly higher credit limits.
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