| International Financing
There
are many ways to finance equipment principally made in the
United States and sold to buyers in other countries. The most
efficient and effective way to finance these exports is through
the Export-Import Bank of the United States (Ex-Im Bank) which
is the official export credit agency of the United States. The
Ex-Im Bank supports the purchases of U.S. goods and services by
creditworthy international buyers that cannot obtain credit
through traditional trade and structured finance sources. Ex-Im
Bank does not compete with private sector lenders but provides
products that fill in the gaps in areas of trade and structured
financing. The Bank assumes country and credit risks that the
private sector is unable or unwilling to accept, and helps to
level the playing field for U.S. exporters by matching the
financing that other governments provide to their exporters. In
more than 70 years of operation, Ex-Im Bank has supported more
than $400 billion of U.S. exports to international markets.
Export finance products:
- Working Capital Loan Guarantee
- Export credit insurance
- Loan guarantee
- Credit Guarantee Facility
- Project Finance and
Structured Finance
- Transportation
The one area we concentrate on
is the Loan Guarantee program. Ex-Im Bank provides guarantees
of commercial loans to international buyers of U.S. capital
goods and services to protect lenders against commercial and
political risks of nonpayment. These guarantees are available
for medium-and long-term loans to international buyers.
Ex-Im Bank will support up to
85% of the contract amount (depending upon the U.S. content)
after a cash payment of at least 15%. Ex-Im Bank’s guarantee
covers 100% of the loan principal and interest. Ex-Im Bank
offers both export credit insurance and guarantees with
repayment terms up to seven years and in some cases offers
guarantees with repayment terms over seven years.
Benefits:
- Enables you to provide competitive-term financing in
difficult markets.
- Limits country and credit risks.
- Local costs and ancillary services (e.g., financial,
legal and technical consulting fees) may be financed.
- You negotiate the interest rate with the buyer.
- Supports loans denominated in certain foreign
currencies.
- Medium-and long-term guarantees available.
Typical Fees involved in
transactions:
- Credit facility fee to lender-1%-2%.
- Documentation fee-1/2%.
- Insurance premium (Ex-Im bank)-variable according to
country.
Interest rates:
- Bases on six month LIBOR plus 100 to 350 basis points.
Special programs for
following industries or areas:
- Environmental
- Medical
- Transportation
Programs we cannot do with
Ex-Im Bank:
- Machines that manufacture steel.
- Weapons
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