http://www.exim.gov/products/work_cap.cfm

How to Apply

Applications & Forms

Delegated Authority Lenders

Country Limitation Schedule

Ex-Im Bank Policies

Multi-Buyer Policy
(to insure your exports)

Transportation Freight Finance Program: Borrower’s
Fact Sheet
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Working Capital Guarantee

Pre-Export Financing To Help U.S. Exporters Maximize Borrowing Potential

Ex-Im Bank’s working capital financing enables U.S. exporters to obtain loans that facilitate the export of goods or services. These working capital loans, made by commercial lenders and backed by our guarantee, provide you with the liquidity to accept new business, grow your international sales and compete more effectively in the international marketplace.

Benefits:

* Fulfill export sales orders
* Turn export-related inventory and accounts receivable into cash
* Expand access to financing

Eligibility

Eligible exporters:

* Must be located in the United States
* Must have at least a one-year operating history
* Must have a positive net worth

Eligible exports:

* Must be shipped from the United States
* Products must have at least 50% U.S. content. (If less than 50%, then Ex-Im Bank can only support the export up to the percent of the U.S. content.)
* Services must be performed by U.S.-based personnel.

Military or defense items are generally not eligible, nor are sales to military buyers (with certain exceptions).

Product Description

Exporters may use the guaranteed financing to:

* Purchase finished products for export
* Pay for raw materials, equipment, supplies, labor and overhead to produce goods and/or provide services for export
* Cover standby letters of credit serving as bid bonds, performance bonds, or payment guarantees
* Finance foreign receivables

Size: There is no minimum or maximum transaction amount.

Coverage: Ex-Im Bank generally guarantees 90% of the bank loan, including principal and interest.

Delegated Authority Lenders: Our pre-qualified commercial lender partners, working under Ex-Im Bank’s delegated authority, can expedite the loan process by committing our guarantee without prior Ex-Im Bank approval. Most of Ex-Im Bank’s working capital guarantees are provided through these lenders.

Repayment Terms: Typically, loan terms are for one year but can be up to three years. The loan can be either transaction-specific or revolving.

Collateral: These guaranteed working capital loans are secured by export-related accounts receivable and inventory (including work-in-process) tied to an export order. For letters of credit issued under the guaranteed loan, we only require collateral for 25% of the face value of the letter of credit. On a case by case basis, the collateral requirement may be reduced to 10% of the face value of the letter of credit.

Borrowing Capacity

With generous advance rates, exporters can borrow more:

* Inventory: Up to 75% advance rate (including work-in-process)
* Foreign Accounts Receivable: Up to 90% advance rate

See the table below for examples of how Ex-Im Bank’s working capital guarantee can increase your borrowing capacity.

Working Capital Facility Borrowing Capacity

Indirect Exporters: Ex-Im Bank also supports indirect exports. Companies that produce goods or services that are sold to U.S. companies and are subsequently exported are also eligible to apply for working capital loans guaranteed by Ex-Im Bank.

Smaller Loans: For loans not meeting the above criteria and for smaller financing needs, we encourage you to contact the Small Business Administration (SBA) office nearest you by calling 800.U.ASK.SBA or visit www.sba.gov.

Application

An exporter may apply to Ex-Im Bank for working capital financing in two ways:

1. Delegated Authority Lender: An exporter may apply through a lender that has been granted a guarantee from Ex-Im Bank. Most lenders that have established a working relationship with Ex-Im Bank have been granted discretionary pre-approved credit authority known as delegated authority. A delegated authority lender may process your working capital loan under established criteria without pre-approval from Ex-Im Bank. No waiting, no red tape! To find a lender that will finance your export sales, use the Lender Locator.

2. Preliminary Commitment Application (direct): An exporter may apply directly to Ex-Im Bank for a preliminary commitment (PC) to a guarantee. A PC is a nonbinding expression of interest from Ex-Im Bank that the borrower’s needs, as outlined in the application, generally meet Ex-Im Bank’s financing requirements. When a PC is granted, the exporter can approach a lender to secure the most attractive loan package. To apply for a preliminary commitment, please contact Ex-Im Bank’s Business Development staff (Contact Us).

Fees/Interest Rate

* Application Processing Fee – $100 for a final commitment (No additional fee is charged for conversion of a preliminary commitment to a final commitment.)
* Up-front Facility Fee – 1.5% of the total loan amount, based on a one-year loan. (For loans of up to six months, the facility fee is 0.75% of the total loan amount.)
* Exporters may qualify for a lower 1% Facility Fee if they meet certain criteria.
* Interest rate and application fees as charged by the commercial lender.

Insurance Discount with Working Capital Guarantee Loan

Ex-Im Bank provides a 25% discount on its short-term multi-buyer export credit insurance to U.S. exporters who have an Ex-Im Bank working capital loan. Click here for details on the short-term multi-buyer policy.