Export-Import Bank Financing Programs

Ex-Im Bank Working Capital 

Basic Parameters

  • Advance rates are up to 90% against export accounts receivable and 75% against inventory

  • Tenor: Generally one year or less

  • Must be fully collateralized with export-related inventory and accounts receivable

  • Loans can be transaction-specific or revolving

  • Covers exporter performance risk (Provides no protection to exporter against foreign buyer non-payment)

Eligibility

Exporter:

    • Must have a positive net worth

    • At least a one-year operating history

    • Business operations in the United States

    • Products must be shipped from U.S. port

    • Minimum 50% U.S. content

Collateral:

    • Export-related account receivable and inventory

    •  A/R Ineligible if >60 days past due, 90 days w/insurance

    •  Sales on terms not to exceed 180 days

EX-IM Working Capital Benefits

  • Increase sales/profits

  • Expand collateral base

- Export-related inventory, including WIP

- Export-related accounts receivable-Normally with credit insurance

  • Support L/Cs, Bid and Performance Bonds (only require 25% collateralization rate)

Ex-Im Bank Foreign Buyer Financing

Ex-Im Bank offers medium term loan guarantees directly to foreign buyers (the buyer submits an application on their own behalf to Ex-Im). These loans are to finance the purchases of U.S. capital equipment and services.  

Some of the loan guarantee program details include:  

  • The loan guarantee will typically cover 85 percent of the U.S. content of the transaction.

  • The international buyer is required to make a payment of at least 15 percent of the supply contract, for which payment can be borrowed from a lender or from the exporter, or paid with cash.

  • Repayment terms up to five years are generally available for exports of capital equipment and services. Terms up to 10 years may be available for transportation equipment and exports to large-scale projects. Repayment terms for renewable energy projects have the potential for a longer term.

To determine whether a foreign buyer is eligible for financing, the following documentation is necessary to conduct an assessment:  

  1. A copy of a proforma invoice or quote for the US made equipment. This must be issued by the US Exporter/Supplier.

  2. Audited Financial Statements for the most recent three fiscal years with full notes and detailed depreciation and Current Maturing Long-Term Debt (CMLTD) information in the statements and/or notes.

  3. Interim financial statement if available for a more recent period (within 30 to 90 days). Company accounting software schedules are acceptable.

  4. A brief description of the company line of business, what is the company purchasing, and why are you purchasing it?

  5. If this is a group of companies, or if there are affiliates, please provide details so that we have a better understanding of your company.  Provide general information about any related companies not disclosed in financial statements.

  6. A brief summary of the ownership structure of company.

Based on this information, a term sheet outlining the next steps will be issued if you qualify. For a free pre-qualification assessment for foreign buyers, please email documentation to sales@westartrade.com and submit an online form at www.westartrade.com.