Presentation on theme: "Trade Financing Solutions Export-Import Bank of the United States Increasing Your Export Sales… While Minimizing Risks!"— Presentation transcript:
Trade Financing Solutions Export-Import Bank of the United States Increasing Your Export Sales… While Minimizing Risks!
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Who We Are - What We Do + Ex-Im Bank is an independent agency of the United States >Established in 1934 >Headquartered in Washington, DC >5 regional business development offices (New York, Miami, Chicago, Houston, Long Beach, CA) + Mission: Support the export of US-manufactured products and services, and to create and sustain US jobs
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Your Needs - Our Solutions 1.Inventory Financing 2. Short-Term Accounts Receivable Financing 3. Medium-Term Financing 4. Long-Term Financing Working Capital Guarantee Working Capital Guarantee or Export Credit Insurance Export Credit Insurance or Guarantees Guarantees or Direct Loans
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Small Business is Our Business + 86% of transactions supported small business exports >95% working capital >90% short-term insurance >17% medium-term financing
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Ex-Im Bank Products Pre-export Financing: WORKING CAPITAL GUARANTEE Post-Export Financing: INSURANCE GUARANTEES DIRECT LOANS
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Solution 1: Working Capital Guarantee + Used by small-and medium-size U.S. companies + Provides a guarantee to lenders which make loans to exporters; funds must be used to manufacture or purchase US goods /services for export AND/OR to post performance bonds (stand-by L/C’s) + No minimum or maximum amount
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Working Capital Guarantee + 90% guarantee to the lender, 100% if woman or minority-owned + Can be “transaction-specific” or “revolving” + Inventory and accounts receivable (usually L/C’s or insured receivables) are pledged as collateral + Advance rates as high as 75% on inventory and 90% on eligible receivables + Interest rate is negotiated between the exporter and lender; Ex-Im Bank’s guarantee fee to the lender is up to 1.5% of the loan amount, and the bank may pass the fee on to the exporter
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Working Capital Guarantee + Owner(s) with more than 20% equity must pledge a personal guarantee + “Additionality” must be addressed by the lender: >No “deep pockets” >Why is Ex-Im Bank needed to make this financing come to fruition?
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Solution 2: Short-Term Credit Insurance + BENEFITS >Risk protection: Insure foreign receivables against non-payment due to commercial and political risks >Marketing Tool: Offer competitive credit terms directly to foreign buyers to meet/beat the competition and increase sales! >Financing Aid: Assign policy proceeds (claim payments) to a lender as additional collateral
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s
Solution 3: Medium-Term Financing + Generally used for buyer financing of capital equipment: >1 to 5 year repayment terms, exceptionally 7 years and < $10 million >15% downpayment required, 85% financed amount: +Guarantees - available only to the lender issuing the “buyer credit” +Insurance - Medium-Term Single-Buyer Policy available to the exporter OR the lender
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Solution 4: Long-Term Financing + Generally used for buyer financing of very large items (aircraft) and project finance: >Amounts over $10 million >15% down payment: 85% financed amount >USE: +Medium-Term Guarantees +Direct Loans
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Just A Few Restrictions + Military Exports (exceptions apply) + Foreign Content + Restricted Countries (political or economic) + Economic Impact + Shipping (For direct loans only: goods must be shipped on US bottoms unless a MARAD waiver is obtained) + Buyer’s Creditworthiness
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Military Restrictions + No Defense Articles or Services + Three Exceptions >1. Humanitarian purposes >2. Drug interdiction >3. Dual use items
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s Restricted Countries + Ex-Im Bank conducts business in many countries throughout the world + Restrictions may apply for political or economic conditions + 1st step, check the Country Limitation Schedule (CLS) on the web. + X means support is not available.
E x p o r t – I m p o r t B a n k o f t h e U n i t e d S t a t e s For More Information + SHARYN H. KOENIG >Business Development Officer >212-809-2653 >E-MAIL: email@example.com