TD supports its customers in their export sales by providing both pre-shipment and post-shipment financing.

PRE-SHIPMENT FINANCING

• Operating Lines of Credit - Depending on the nature of the trade transaction, Exporters can set up special lines of credit with TD to cover specific export contracts. TD may also complement such lines of credit with programs available through federal government agencies, such as the Progress Payment Program that TD subscribes to with the Canadian Commercial Corporation and the Export Development Corporation's Working Capital Guarantee Program.
• Equity - Assistance can be provided by TD Securities Inc.

POST-SHIPMENT FINANCING

TD provides financing for either short and/or medium terms. (ie. short term financing - under 360 days)

Letter of Credit Confirmations

• If an Exporter is uncomfortable with the risk of the bank and/or country from which a Letter of Credit is issued, TD can offer to assume the payment risk by confirming or adding its payment guarantee to the Letter of Credit. When TD confirms a Letter of Credit, the Exporter need only be concerned with complying with the terms and conditions of the Letter of Credit since the payment risk is assumed by TD.

Letter of Credit Discounting

• Instead of an Exporter waiting until the maturity date of an accepted term Letter of Credit for receipt of funds, TD may discount the accepted draft based on prevailing interest rates. This allows the Exporter to receive payment, net of discount charges, as soon as the draft is accepted. In addition to enhancing cash flow, the Exporter usually benefits from the discount rate being less than its own borrowing rate as the discount rate is based on the risk of the accepting bank.

Letter of Credit Refinancing

• While an Exporter usually bears the cost of discounting payments under Letters of Credit, a popular way of shifting such burden to the foreign buyer is through a Letter of Credit payable at sight, where the payment is refinanced over a predetermined period. This provides the Exporter with immediate cash flow together with protection against non-payment at maturity and related political risks, such as non-availability of foreign currency, etc.. TD's ability to accommodate these types of transactions often clinches the deal for our customer!

Discounting Drafts

• TD can arrange to discount drafts drawn on foreign banks so that the Exporter is paid the amount of the draft less the discounting charges upon shipment rather than waiting for the draft to mature. By utilizing its extensive correspondent banking network, TD can often provide this export financing option to the Exporter. The process of discounting either drafts or foreign invoices can be tailored to meet a company's export financing needs.

Discounting/Financing of Open Account Receivables

• By financing open account receivables, TD facilitates an Exporter's growing, international business which may improve the balance sheet and ease budgetary constraints associated with such growth. It also helps Exporters meet competitive pressures to provide buyer financing.