Working Capital
We know that in order for you to begin exporting internationally, you'll need access to a dependable source of working capital that provides financial stability while you expand exports.
Our working capital financing does that by enabling small business exporters like you to obtain loans which facilitate the exports of goods or services made by commercial lenders and backed by our guarantee. These loans provide you the liquidity and confidence to accept new international contracts, grow your export sales, and compete more effectively in the international marketplace.
How do we do it?
Our Working Capital Guarantee encourages commercial lenders to make working capital loans by providing them with a 90% loan backing guarantee, which decreases their risk. With Ex-Im Bank our Delegated Authority Lenders - lending partners with whom we have agreements - can expedite your loan process by evaluating your eligibility against our requirements, and offer our guarantee before we transact with the lender. You'll get the loan you need when you need it.
As a small business exporter, you'll enjoy leveraged assets from an expanded borrowing base along with higher advance rates, and Ex-Im Bank's Working Capital Guarantee can cover both multiple export sales or individual contracts.
Benefits
- Fulfills export sales orders
- Converts your export-related inventory and accounts receivable into cash
- Expands your access to financing
- Encourages lenders to grant exporter loans
- Enhances value of your existing collateral base
- Offers generous advance rates (up to 90% for export-related accounts receivables and up to 75% for export-related inventory, including work-in-process)
- Provides a 25% discount on multi-buyer insurance premiums and lowers Working Capital Facility fee
- Collateral requirement to issue standby letters of credit is only 25%, instead of the standard 100% cash collateral generally required in the private sector. On a case by case basis the collateral requirement may be lowered to 10%.
- Covering warranty letters of credit up to 20% of the working capital loan amount or $1.5 million, whichever is lower, for a term of 12 months.
With our guarantee in place, your business can start putting these working capital loans to work, purchasing raw materials or supplies while supporting related overhead. You'll also be able to use them to issue standby letters of credit serving as a bid or performance bond and for financing foreign receivables. Loan terms are typically for one, but can extend up to three, years, and the working capital line can be used on a single transaction or revolving basis. There is no minimum or maximum transaction amount.
Borrowing Capacity
Our generous advance rates mean you can borrow more with less:
- On export-related inventory, enjoy an up to 75% advance rate (including work-in-process).
- On foreign accounts receivable, enjoy an up to 90% advance rate. On a case-by-case basis, for standby letters of credit issued under our guaranteed loan, collateral will be required for only 10% of the value of the letter of credit.
- Use Ex-Im Bank to maximize your borrowing base.
Indirect exports
We also support indirect exports, meaning that companies producing goods or services sold to U.S. companies and subsequently exported, are also eligible to apply for working capital loans guaranteed by Ex-Im Bank.
Fees / Interest Rate
The following fees come with our Working Capital Guarantee:
- An application Processing Fee - $100 for a final commitment.
- Our Up-front Facility Fee equals 1.75% of the total loan amount, based on a one-year loan. Loans of up to six months carry a facility fee of 0.875% of the total loan amount; those meeting certain criteria may qualify for a lower 1.25% Facility Fee.
- Interest rate and other application fees charged by the commercial lender.
Collateral
We secure these guaranteed working capital loans 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. On a per case basis, the collateral requirement may be reduced to 10% of the face value of the letter of credit.
Is my business eligible?
In order to qualify for our Working Capital Guarantee Program, a small business exporter:
- Must be located in the United States.
- Must have at least one-year operating history and a positive net worth.
- Must have services performed by U.S.-based employees.
- Must have products shipped from the U.S. to a foreign buyer.
- Generally, each product must have more than 50% U.S content based on all direct and indirect costs. Review Ex-Im Bank Content Policy for more information.
- Ex-Im Bank cannot support exports of military or defense products and services (with some exceptions), nor can we support purchases made by military buyers.
- Coverage: Ex-Im Bank generally guarantees 90% of the bank loan, including principal and interest.
Getting Started
Please visit the nearest Ex-Im Bank office for a free consultation with an Export-Import Bank Trade Finance Manager, call 202-565-3946 or email us at info@exim.gov.
If you would like to know more about the application process and apply on line, REVIEW THE PROCESS OVERVIEW HERE.
Insurance discount with our Working Capital Guarantee:
U.S. exporters who have an Ex-Im Bank Working Capital Guarantee are eligible for a 25% discount on our short-term, multi-buyer export credit insurance. Review details on the short-term, multi-buyer policy.
We know that in order for you to begin exporting internationally, you'll need access to a dependable source of working capital that provides financial stability while you expand exports.
Our working capital financing does that by enabling small business exporters like you to obtain loans which facilitate the exports of goods or services made by commercial lenders and backed by our guarantee. These loans provide you the liquidity and confidence to accept new international contracts, grow your export sales, and compete more effectively in the international marketplace.
How do we do it?
Our Working Capital Guarantee encourages commercial lenders to make working capital loans by providing them with a 90% loan backing guarantee, which decreases their risk. With Ex-Im Bank our Delegated Authority Lenders - lending partners with whom we have agreements - can expedite your loan process by evaluating your eligibility against our requirements, and offer our guarantee before we transact with the lender. You'll get the loan you need when you need it.
As a small business exporter, you'll enjoy leveraged assets from an expanded borrowing base along with higher advance rates, and Ex-Im Bank's Working Capital Guarantee can cover both multiple export sales or individual contracts.
Benefits
- Fulfills export sales orders
- Converts your export-related inventory and accounts receivable into cash
- Expands your access to financing
- Encourages lenders to grant exporter loans
- Enhances value of your existing collateral base
- Offers generous advance rates (up to 90% for export-related accounts receivables and up to 75% for export-related inventory, including work-in-process)
- Provides a 25% discount on multi-buyer insurance premiums and lowers Working Capital Facility fee
- Collateral requirement to issue standby letters of credit is only 25%, instead of the standard 100% cash collateral generally required in the private sector. On a case by case basis the collateral requirement may be lowered to 10%.
- Covering warranty letters of credit up to 20% of the working capital loan amount or $1.5 million, whichever is lower, for a term of 12 months.
With our guarantee in place, your business can start putting these working capital loans to work, purchasing raw materials or supplies while supporting related overhead. You'll also be able to use them to issue standby letters of credit serving as a bid or performance bond and for financing foreign receivables. Loan terms are typically for one, but can extend up to three, years, and the working capital line can be used on a single transaction or revolving basis. There is no minimum or maximum transaction amount.
Borrowing Capacity
Our generous advance rates mean you can borrow more with less:
- On export-related inventory, enjoy an up to 75% advance rate (including work-in-process).
- On foreign accounts receivable, enjoy an up to 90% advance rate. On a case-by-case basis, for standby letters of credit issued under our guaranteed loan, collateral will be required for only 10% of the value of the letter of credit.
- Use Ex-Im Bank to maximize your borrowing base.
Indirect exports
We also support indirect exports, meaning that companies producing goods or services sold to U.S. companies and subsequently exported, are also eligible to apply for working capital loans guaranteed by Ex-Im Bank.
Fees / Interest Rate
The following fees come with our Working Capital Guarantee:
- An application Processing Fee - $100 for a final commitment.
- Our Up-front Facility Fee equals 1.75% of the total loan amount, based on a one-year loan. Loans of up to six months carry a facility fee of 0.875% of the total loan amount; those meeting certain criteria may qualify for a lower 1.25% Facility Fee.
- Interest rate and other application fees charged by the commercial lender.
Collateral
We secure these guaranteed working capital loans 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. On a per case basis, the collateral requirement may be reduced to 10% of the face value of the letter of credit.
Is my business eligible?
In order to qualify for our Working Capital Guarantee Program, a small business exporter:
- Must be located in the United States.
- Must have at least one-year operating history and a positive net worth.
- Must have services performed by U.S.-based employees.
- Must have products shipped from the U.S. to a foreign buyer.
- Generally, each product must have more than 50% U.S content based on all direct and indirect costs. Review Ex-Im Bank Content Policy for more information.
- Ex-Im Bank cannot support exports of military or defense products and services (with some exceptions), nor can we support purchases made by military buyers.
- Coverage: Ex-Im Bank generally guarantees 90% of the bank loan, including principal and interest.
Getting Started
Please visit the nearest Ex-Im Bank office for a free consultation with an Export-Import Bank Trade Finance Manager, call 202-565-3946 or email us at info@exim.gov.
If you would like to know more about the application process and apply on line, REVIEW THE PROCESS OVERVIEW HERE.
Insurance discount with our Working Capital Guarantee:
U.S. exporters who have an Ex-Im Bank Working Capital Guarantee are eligible for a 25% discount on our short-term, multi-buyer export credit insurance. Review details on the short-term, multi-buyer policy.