1. In what currencies does GE lend in Mexico?

GE’s Mexican loans are made primarily in U.S. dollars, although we have the capability to lend in Mexican pesos if the situation warrants the use of the local currency.

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2. At what interest rates does GE lend in Mexico?

Our rates in Mexico vary, as they do for any financial institution anywhere, with the creditworthiness of the client and with any given financing structure.In general, however, our rates are comparable with our rates for a similar credit / financing structure in the U.S. or elsewhere, adjusted for Mexican depreciation requirements, taxes and credit considerations.

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3. What is GE’s Mexican asset base?

GE currently holds a portfolio of Mexican assets valued at US$2.5Billion. This portfolio includes real estate, machinery and other production equipment, corporate aircraft, trucks, trailers and other fleet vehicles, accounts receivables, insurance and other financial assets.

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4. What is GE’s experience in Mexico?

GE has been operating in Mexico since 1993. Our diverse client base includes many North American, European and Asian companies with manufacturing operations in Mexico.

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5. What makes GE’s financial products unique in the marketplace?

Many principal lenders are unwilling to lend against equipment that is physically located in Mexico, meaning the investment in this equipment drains the parent company’s financial capacity. GE was first in the market with a U.S. dollar denominated Mexican lease product that removes these constraints. With the exception of niche market players for a limited number of customers, GE remains the only large-scale Mexican lessor with the capacity to handle multi-million dollar equipment investments that many non-Mexican parent companies are looking to make.

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6. Can GE also handle my real estate investment needs in Mexico?

GE handles real estate investments in Mexico.Our commercial real estate financial services round out many clients’ complete Mexican financing requirements.

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7. What are the principal decision parameters between off- and on-balance sheet structures
and U.S. to U.S. vs. Mexico to Mexico structures?

The parameters are as individual as each company, but the financial and geographical structures are generally determined by the answers to one or more of the following questions:

Does the company intend to own the assets covered at the end of the financing term?

Does the parent company have bank covenants restricting its ability to take on further debt or limiting the size of its investments in Mexico?

Does the parent company have bank covenants restricting its ability to take on further debt or limiting the size of its investments in Mexico?

Does the parent company have a need / preference to maintain its non-Mexican financial capacity freed up for non-Mexican projects?

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8. Can GE work with my company’s accountants to create the most tax-efficient financing structure?

At GE, we work with each client to ensure that the client is making the best use of our products and services, including efficient tax planning.

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9. What is the process for GE’s financing of Mexican assets?

As soon as we make contact with a company looking to invest in or refinance assets in Mexico, we arrange a discussion between the parent company executives, our local account executives, and our team of specialists in Mexico to establish the companies’ needs and structuring parameters. GE then delivers a proposal for financing the Mexican investment. After discussion and signing of the proposal, GE assigns local and Mexican credit specialists to review the company and the proposed financing. Upon credit approval, the documents are prepared and sent to the client for review. After the completion of the documentation process, the funds are disbursed as agreed.

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10. How long does it take to receive funding?

While we have completed transactions from first contact to disbursement of funds in as little as one week, the whole process generally takes four to six weeks.

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