Payment Security


 

Item


 

Description


 

Benefits


 

Costs


 

Commercial Pledge

May be pledged under Mexican Law:      
  Bank Accounts      
  Equipment      
  Animals      
  Crops      
  Timber      
  Inventory      
  Leases      
  Receivables      
  Contractual Rights      
  Vehicles      
  Cash      





Mortgage Guaranty (Hipoteca)

       





Conditional Sale

       





Bond (Fianza)

       





Pagares (Promissory Note)

  Can be pursued legally for collection.   Must have assigned value.   Must be notarized.  Provides security interest.     





Pledge Guaranty (Prenda)

  Provides creditor with security interest.    More costly to supplier than a pagare. 





Personal Guaranty (Aval)

       





Other Security Contracts

conditional sale contract (venta con cláusula rescisoria)      





 

title retention contract (venta
con reserva de dominio
)
     

Nonpossessory Pledge

  Agreement executed in writing to create security interest in moveable assets of debtors to guaranty payment obligation.   (AR and Inventory)    





Collateral Trust

       

Floating Lien Pledge

  A floating lien pledge can ideally be documented in a notarial instrument and be registered in the Sole Guarantee Registry (Registro Único de Garantías Mobiliarias) (SGR) so that it can be enforceable against third parties. However, there are some cases where the security does not require registration before public record offices and a direct notification to the debtor of the collector's rights is sufficient.    





Guarantee trusts

  The guarantee trust must be documented in a notarial instrument if, within the trust, immovable property is being incorporated or if the movable assets transmitted to the trust exceed the amount provided by law (that is, MXN250,000).    





Government Programs

US Agriculture USDA Export Credit Guarantee Program (GSM-102) Covers credit terms up to three (3) years. Under the GSM-102 & GSM-103 programs, the Commodity Credit Corporation guarantees payments due from foreign banks—typically, 98% of principal and a portion of interest at an adjustable rate. Because repayment is guaranteed, U.S. financial institutions can offer credit on competitive terms to foreign banks, usually with interest rates based on the LIBOR.





      Intermediate Export Credit Guarantee Program (GSM-103) Guarantees longer term credits up to 10 years. 





Mexico

    National Financial (Nafin/Nainsa) Equivalent of EXIM for Mexico





    Mexico's Development Bank in charge of financing international trade Bancomext  





Cross Corporate Guarantee

       





Letters of Credit

       





Reverse Factoring

       





Cash against Docs

       





Documents against Acceptance

       

 


Financing Tools

Government Programs

US Agriculture USDA Export Credit Guarantee Program (GSM-102) Covers credit terms up to three (3) years. Under the GSM-102 & GSM-103 programs, the Commodity Credit Corporation guarantees payments due from foreign banks—typically, 98% of principal and a portion of interest at an adjustable rate. Because repayment is guaranteed, U.S. financial institutions can offer credit on competitive terms to foreign banks, usually with interest rates based on the LIBOR.
         
      Intermediate Export Credit Guarantee Program (GSM-103) Guarantees longer term credits up to 10 years. 





  Mexico   National Financial (Nafin/Nainsa) Equivalent of EXIM for Mexico
      Bancomext Mexico's Development Bank in charge of financing international trade





Personal Guarantee