Innovative Financing for US Manufacturers’ Mexico-Based Equipment

US manufacturers now have financing options for their Mexico-based equipment. Traditionally this collateral could not be easily financed since US institutions have little experience recovering equipment in Mexico. Additionally, Mexican withholding taxes on cross-border operating leases can make these transactions prohibitively expensive.

From the perspective of Mexican financial institutions the Mexican operations generally do not have a credit profile that will support the financing, and US dollar financing is expensive in Mexico.

KMEX Leasing, LLC has solved the various issues surrounding this type of financing; the platform allows US companies to finance new equipment purchases and generate cash through sale-leaseback transactions. The program is focused on leasing manufacturing, material handling, and packaging equipment in transactions of less than US$10 million, though larger transactions can be financed. Terms of up to 7 years will be available, depending on the equipment type.

“We have put together a team that understands equipment financing on both sides of the border,” explained Kevin O’Gara, CEO of KMEX Leasing, “Our approach coordinates the financing goals of the US parent and Mexican subsidiary.”

Mr. O’Gara, who founded KMEX Leasing, has over 25 years of cross-border financing experience. KMEX Leasing is based in Atlanta and has an office in Mexico City.

For more information contact Kevin O’Gara at (404) 805-3287 or kogara@kmexleasing.com