All business owners and CEOs interested in growing their business and possibly expanding to international markets, should make themselves knowledgeable about the Export-Import Bank. The Ex-Im Bank provides financing assistance for the export of U. S. goods and services to international markets. The goal of the Bank is to make American exporters more competitive in the global marketplace. The Ex-Im Bank offers financing and insurance that most private institutions won’t. The Bank assumes the risk so you don’t have to. Their insurance, guarantees and buyer financing help make selling internationally less worrisome. (Canada probably has a similar agency to assist its manufacturers desiring to grow exports!)
- Reduces non-payment risks
- Enables companies to extend competitive credit terms to buyers overseas.
- Helps companies export to world markets with more confidence.
- Provides working capital guarantees
Additional Benefit: Expansion to international markets increases perceived size and value of the company and buffers the company against downturns in any market or continent.
Fulfill Export Orders: The Bank allows US businesses to fulfill export sales orders, turn export related inventory and accounts receivable into cash and expands access to financing.
Eligibility: To be eligible, you must be located in the United States, have at least a one year of operating history and have a positive net worth.
Exports: Eligible exports must be shipped from the Unites States, must have at least 50% U. S. content, and services must be performed by U. S. based personnel
Use of Funds: Exporters may use the guaranteed financing to purchase finished products for export, pay for raw materials, equipment, supplies, labor and overhead to produce goods for export. In addition it can be used to finance foreign receivables
Loan Amounts: Exporters can borrow up to:
- 75% of the cost of inventory including work in process,
- 90% of foreign accounts receivable, and.
- 90% of the bank loan including interest is covered by the guarantee.
- Fees & Interest Rates: The application fee is $100.00. The Facility Fee is 1.5% of the total loan amount. Interest rates are those charged by the commercial lender.
For Further Information: Contact your local Export – Import Bank office for complete information and increase your export sales.
Download this article as a PDF: POV_27 Export-Import Bank