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Supply Chain Finance Guarantee Program Increasing Capital for U.S. Businesses The Ex-Im Bank Supply Chain Finance Guarantee, offered to lenders, benefits U.S. exporters and their suppliers through accounts receivable financing. It is designed to inject liquidity in the marketplace and provide suppliers, particularly small businesses, with access to capital faster and at a lower cost.Suppliers can sell their accounts receivable to a lender to obtain early payment of invoices at a discounted rate. This helps them obtain cash quickly (often at lower rates that reflect the credit of the buyer) and increase liquidity to fulfill new orders. Exporters have the option to extend payment terms and obtain a working capital benefit without imposing undue financial hardship on their suppliers. The Ex-Im Bank guarantee, which bears the full faith and credit of the United States, is provided directly to the lender. Ex-Im Bank provides a 90% guarantee of an eligible invoice while the lender bears 10% risk. This arrangement allows the lender to efficiently maintain their relationships directly with the exporters and suppliers without Ex-Im Bank involvement. Benefits to the Small Business Supplier:
Benefits to the Exporter:
How It Works
Exporter Eligibility
Supplier Eligibility
Lender Eligibility
Page last updated: May 2, 2011 |
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