For many U.S. exporters, a lack of financing can stand in the way of global growth. EXIM has several forms of support that can provide a solution:
- Working Capital Loan Guarantee
Provided your business is at least one year old; has goods that have at least 50% US content and are manufactured in the US and exported from the US, EXIM can work with your private lender to help secure financing for international sales by providing a guarantee on principal and interest for 90% of export-related Accounts Receivable and 75% of export-related Inventory. A lender receives a loan "guarantee" from EXIM, guaranteeing repayment for a percentage of the loan if the borrower ((i.e., U.S. exporter) defaults. You can use the loan from your bank to pay for the labor, materials, and other inputs required to fulfill sales. EXIM doesn't replace your private bank; it simply backs their loan and increases your borrowing power. - Export Credit Insurance
An insurance policy for your foreign accounts receivable provides protection against the risk of buyer nonpayment. When EXIM backs your foreign receivables, private lenders are often willing to lend against assets otherwise excluded from the borrowing base. The bottom line for your business: same collateral, a larger borrowing base, and a better cash flow.
