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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 SDtructured 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-ter 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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