Medium Term
Ex-Im Bank's medium-term credit products give you access to financing necessary to compete in international markets. Essentially, this product allows you to secure longer-term financing for your overseas buyers. Our Medium-Term Credit Insurance products lower your exporting risks by protecting sales to a single foreign buyer against the buyer's failure to pay due to unforeseen commercial or political reasons.
Medium-Term Credit Insurance protects term financing to international buyers of capital equipment or related services. Exporters supporting the sale of U.S. capital goods, its installation and a complement of spare parts if necessary, can insure their foreign receivables against losses with Ex-Im Bank medium-term policies.
Financing with this product can extend up to five years (based upon the contract amount) for amounts up to $10 million.
How does this increase my exports?
This policy can provide you with:
- Risk reduction -- insures against nonpayment by international buyers.
- A marketing tool -- provides competitive credit to international buyers.
- Financing -- increases your cash flow, allowing you to export to emerging markets with confidence.
- Buyer financing -- allows your buyers to receive financing to purchase your export.
The product provides your buyers with extended credit terms for principal and interest, can cover local costs (up to 30%) and ancillary services (e.g., financial, legal or banking fees), and the exporter or a financial institution can apply for coverage.
Coverage: Commercial and Political Risks
The maximum cover available under Medium-Term Credit policies is $10 million.
This product covers political and commercial losses resulting from nonpayment for such reasons as a buyer's insolvency or failure to pay an obligation.
Ex-Im Bank indemnifies an insured for 100% of the financed portion in the event of a commercial or political loss.
Our medium-term products cover credit sales in which payment terms range between one and five years (exceptionally 7 years). Policies are available to accommodate two types of transactions. products are available to cover single, one-time transaction sales as well as repetitive, ongoing relationship sales that generally exist between you as an exporter and a buyer.
All of our medium-term policies require that the insured obtain a cash down payment from the buyer in an amount equal to at least 15% of the contract price prior to delivery. The remaining financed portion is then insured at 100%. The buyer's obligation to pay the financed portion must be evidenced by a promissory note. The financed portion must be payable in at least semiannual equal installments of principal and interest.
Costs
All Ex-Im Bank products require premium payment by the last business day of the month immediately following each insured shipment or funding for financial institutions. Premium is calculated on the financed portion of the medium-term shipments made during the period.
Applicants may obtain a non-binding rate indication by referring to the Exposure Fee Calculator on our website or by contacting a Ex-Im Bank Regional Office nearest to you with specifics of your potential transaction.
Eligible Repayment Terms
The length of payment terms available under Ex-Im Bank medium-term products depends on the total value of sales and, to some extent, upon the unit value of capital goods. Visit Eligible Repayment Terms on our website for details.
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.
Ex-Im Bank's medium-term credit products give you access to financing necessary to compete in international markets. Essentially, this product allows you to secure longer-term financing for your overseas buyers. Our Medium-Term Credit Insurance products lower your exporting risks by protecting sales to a single foreign buyer against the buyer's failure to pay due to unforeseen commercial or political reasons.
Medium-Term Credit Insurance protects term financing to international buyers of capital equipment or related services. Exporters supporting the sale of U.S. capital goods, its installation and a complement of spare parts if necessary, can insure their foreign receivables against losses with Ex-Im Bank medium-term policies.
Financing with this product can extend up to five years (based upon the contract amount) for amounts up to $10 million.
How does this increase my exports?
This policy can provide you with:
- Risk reduction -- insures against nonpayment by international buyers.
- A marketing tool -- provides competitive credit to international buyers.
- Financing -- increases your cash flow, allowing you to export to emerging markets with confidence.
- Buyer financing -- allows your buyers to receive financing to purchase your export.
The product provides your buyers with extended credit terms for principal and interest, can cover local costs (up to 30%) and ancillary services (e.g., financial, legal or banking fees), and the exporter or a financial institution can apply for coverage.
Coverage: Commercial and Political Risks
The maximum cover available under Medium-Term Credit policies is $10 million.
This product covers political and commercial losses resulting from nonpayment for such reasons as a buyer's insolvency or failure to pay an obligation.
Ex-Im Bank indemnifies an insured for 100% of the financed portion in the event of a commercial or political loss.
Our medium-term products cover credit sales in which payment terms range between one and five years (exceptionally 7 years). Policies are available to accommodate two types of transactions. products are available to cover single, one-time transaction sales as well as repetitive, ongoing relationship sales that generally exist between you as an exporter and a buyer.
All of our medium-term policies require that the insured obtain a cash down payment from the buyer in an amount equal to at least 15% of the contract price prior to delivery. The remaining financed portion is then insured at 100%. The buyer's obligation to pay the financed portion must be evidenced by a promissory note. The financed portion must be payable in at least semiannual equal installments of principal and interest.
Costs
All Ex-Im Bank products require premium payment by the last business day of the month immediately following each insured shipment or funding for financial institutions. Premium is calculated on the financed portion of the medium-term shipments made during the period.
Applicants may obtain a non-binding rate indication by referring to the Exposure Fee Calculator on our website or by contacting a Ex-Im Bank Regional Office nearest to you with specifics of your potential transaction.
Eligible Repayment Terms
The length of payment terms available under Ex-Im Bank medium-term products depends on the total value of sales and, to some extent, upon the unit value of capital goods. Visit Eligible Repayment Terms on our website for details.
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.