Export-Import Bank of the United States exim.gov | 1
EXPORT
EXPERTISE
EXPORT-IMPORT BANK
OF THE UNITED STATES
10 FINANCE TOOLS TO GROW
YOUR EXPORT BUSINESS
Export-Import Bank of the United States exim.gov | 2
EXIM Creates Jobs!
EXIM’s mission is to create and sustain U.S. jobs through exports. We do this by
protecting exporters against nonpayment by their foreign buyers and assisting them
in financing the export of U.S.-made goods and services to international markets.
The U.S. Department of Commerce reported $2.35 trillion worth of goods and
services were exported in fiscal year 2014, a record year for export growth, mostly
done by small businesses. Learn about the financial tools businesses like yours can
use to take advantage of this trend.
10 Ways the Export-Import Bank of the United
States Assists Small Businesses
1) Protect Against Nonpayment
You can get export credit insurance to protect your
company against nonpayment due to commercial
and political risks for single or multiple shipments.
2) Loans for Pre-Export Needs
EXIM provides loans of up to $500,000 for your
pre-export working capital needs.
3) Long-term Open Account Credit
You may extend up to 180 days of open account
credit to a foreign buyer and still be protected
against the buyer’s nonpayment.
4) Long-term Buyer Credit
You can offer your foreign buyers up to five years
to pay for capital equipment and still be protected
against nonpayment. EXIM’s medium-term export
credit insurance policy protects you for 100% of the
gross invoice amount. The buyer is required to make
a 15% cash down payment. You carry the foreign
receivable on your books for the full tenor of the
credit. As an alternative, you may be able to arrange
a “buyer credit” transaction with your lender, in
which the lender cashes you out up front, leaving
them to carry the receivable and seek nonpayment
protection from EXIM.
5) Indirect Exports
EXIM’s Working Capital Loan Guarantee may support
your “indirect exports.” This will empower you to
borrow funds from your lender to purchase or
produce U.S. goods that are destined for export, or
that are sold by you to another U.S. company that
exports the products.
Export-Import Bank of the United States exim.gov | 3
10 Ways the Export-Import Bank of the United
States Assists Small Businesses (continued)
6) Multiple Loan Options
Under the Working Loan Capital Guarantee, the loan
from your lender may be set up either as a revolving
line of credit to support the manufacture or
acquisition of all your U.S.-sourced export inventory,
OR as a “transaction-specific” loan supporting a
purchase order from just one foreign buyer.
7) Short/Medium-term Credit Standards
EXIM publishes our Short/Medium-term Credit
Standards, which specify the amount and type of
credit information we need to review your request
for support. These documents are available on our
website at exim.gov.
8) Pay-As-You-Ship Portfolio
You can insure your entire export portfolio on a
pay-as-you-ship basis with no minimum premium and
no first-loss deductible.
9) Protect Foreign Receivables
Use credit insurance to protect your foreign
receivables from a foreign buyer’s default, and as a
marketing tool to extend competitive credit terms.
0) Export Finance Manager
EXIM has an Export Finance Manager at an EXIM
Regional Export Finance Center ready to talk to you
now! Call our customer contact center: 1-800-565-EXIM
(3946) or request a consultation online
grow.exim.gov/consultation
Facts to Know
1. Your company must be in business for at
least one year, and meet a minimum credit
score in order to be eligible to borrow up
to $500,000.
2. EXIM Online provides an easy, streamlined
application process for most of the
products used by “small businesses.”
3. You can cost-effectively insure sales of any
size, and since you “pay-as-you-ship” on the
gross invoice value of each shipment, there
are no wasted premium dollars!
1
Customer Contact Center
1-800-565-EXIM (3946)
grow.exim.gov/consultation
Other Helpful Export Information
TRADE FINANCE GUIDE CONTACT US EXIM.GOV
EXPORT-IMPORT BANK
OF THE UNITED STATES
Learn the basic
fundamentals of trade
finance and turn export
opportunities into sales.
grow.exim.gov/finance-guide exim.gov
Speak with an Export
Finance Manager servicing
your area to help you
determine your eligibility.
For more in-depth
information about EXIM,
visit our website.
Export-Import Bank of the United States exim.gov | 4
Which Product is Best for You?
1) Working Capital Loan
Guarantee
EXIM’s WCLG is a guarantee to lenders who make
loans to small and medium sized companies so they
can purchase or produce U.S. goods or provide a
service for export. There is no minimum or
maximum amount. The exporter must be able to
service the debt they are taking on, as evidenced by
their financial statements and the personal
guarantees of each principal with (or exceeding) 20%
ownership in the company.
Benefits
• Makes funds available to fulfill export
sales order
• May be revolving or transaction-specific
• Allows exporter’s inventory and accounts
receivable to be used as collateral
2) Export Credit Insurance
Export Credit Insurance protects exporters against
nonpayment by foreign buyers due to commercial
and political reasons. These policies are available for
short-term sales (credit terms up to 180 days, 360
days for capital equipment) and medium-term sales
(repayment terms ranging between 1–5 years).
Many exporters use this as a marketing tool to
extend competitive credit terms to foreign buyers
instead of requiring costly letters of credit or cash
in advance.
Benefits
• Equips exporters to provide credit terms to
foreign buyers that could increase sales
• Eliminates most risk of nonpayment by
foreign buyers
• Increases exporter’s borrowing capacity
with lenders by pledging insured receivables
as collateral, allowing for them to be included
in the borrowing base
3) Guarantees of Commercial
Loans to Foreign Buyers
EXIM guarantees cover for principal and interest
against both political and commercial risks of
buyer nonpayment.
Benefits
• Assumes risk lenders will not take, enabling
them to make loans to foreign buyers to
purchase U.S. capital equipment and
related services
EXIM assumes the credit and country risks that exporters and lenders are unable or
unwilling to accept. We also help to level the playing field for U.S. exporters by matching the
financing that other governments provide to their exporters. Below, discover the support
available to U.S.-based small and medium sized businesses:
Did You Know?
1. EXIM will cover 90% of your bank’s
loan’s principal and interest with the
U.S. government.
2. Overall exports of American goods and
services reached a record $2.3 trillion in
2014, up from $1.4 trillion in 2009.
3. In FY 2015, EXIM supported $17.08
billion worth of U.S. exports and an
estimated 109,000 export-related
American jobs. Over the past seven
years, EXIM has supported over 1.4
million jobs in communities across
the country.
Export-Import Bank of the United States exim.gov | 5
Small Business Case Studies
These small businesses are successfully using EXIM services and financial products to expand
their export sales.
Located in a warehouse east of Dallas, Texas, Fritz-Pak manufactures 40
different specialty products for the global construction industry, including
concrete additives and plasters for swimming pools.
Today, Fritz-Pak is a growing small business, eyeing an expansion to the
lot next door. This is due to David Ojeda, the youngest of the father
-mother-son team that runs Fritz-Pak who had the idea to look abroad for
sales opportunities that could replace lost domestic sales following the
2008 recession.
Using EXIM’s export credit insurance, the Ojedas were able to offer credit
terms to new foreign buyers and protect against the risk of not being
paid an especially acute concern when margins are thin. Today, using
export credit insurance, exports account for 35% of their total sales.
Roy Bell III runs Ace Pump Corp., the small industrial pump company his
grandfather started at the end of World War II. You can find their pumps
on everything from tractors and concrete trucks to highway anti-icing
vehicles and asphalt-milling machines.
Since 2009, Ace Pump has used EXIM’s export credit insurance to
protect against the risk of buyer nonpayment in faraway markets and to
extend open credit terms to foreign customers that lack access to
affordable working capital financing. Today, export sales represent
one-fifth of total business, and Ace has expanded its work force in
Tennessee by 10%.
Exporter:
Fritz-Pak, Mesquite, Texas
Exporter:
Ace Pump Corp., Memphis, Tennessee
Markets:
Worldwide, including Mexico, Brazil, India,
and Taiwan
Markets:
Paraguay, Chile, France, Belgium, and Mexico
EXIM Product:
Multi-buyer Export Credit Insurance
EXIM Product:
Multi-buyer Export Credit Insurance
Small Family Business Exports
Small Business Pumps Up Sales with
EXIM’s Financing
Export-Import Bank of the United States exim.gov | 6
Request a Consultation:
grow.exim.gov/consultation
Contact-Us:
1-800-565-EXIM (3946)
Additional Info
Find a Regional Export Partner Near You:
Did you know you can receive free or low cost export counseling at one of
EXIM’s City/State Partner? Find a list of partners in your state here:
exim.gov/about/whoweare/partners/city-state-partners.cfm
Minority & Women-Owned Business:
Are you a Minority or Woman-Owned Business? We have a team of Export
Finance Managers dedicated to assisting Minority and Women-Owned
Bussinesses increase exports:
exim.gov/about/whatwedo/specialassistance/women-and-minorities.cfm
exim.gov
For questions about these programs,
contact our call center
1-800-565-EXIM (3946)
EXPORT-IMPORT BANK
OF THE UNITED STATES
Contact EXIM