Chinese corporate expansion in Brazil produces local assets on a continuing basis

This page is for the side that provides the capital: what kind of asset we bring, what has already been done before it reaches you, and which decisions stay yours.

Once the business stops being export, the capital requirement changes country

Chinese manufacturers in Brazil are moving from exporting and appointing agents to running dealer networks, warehouses, plants and local entities. Every step creates a local credit requirement or a local asset: an inventory line for the channel, a leasing structure for the equipment, a long-term lease on the facility, equity in the joint venture. These requirements rarely reach Brazilian capital on their own — a layer of translation sits between the Chinese parent accounting, guarantee forms and approval chain and the language local underwriting works in.

Dealer floor plan and inventory credit

Lines for the Brazilian dealer and reseller networks of Chinese manufacturers, usually alongside a repurchase or loss-sharing undertaking from the manufacturer.

Equipment and leasing finance

Buyer finance carried by the equipment and the leasing structure, concentrated in automotive, agricultural machinery and industrial and construction equipment.

Built-to-suit and sale-leaseback leases

Owner-occupied logistics and production facilities where the cash flow is carried by a long-term lease; the tenant is the Brazilian entity of the Chinese company.

Equity and joint ventures

Equity opportunities in cross-border M&A and strategic joint ventures, including non-cash contribution structures once technology, production capacity and platform access have been properly priced.