An Original Article from exim.gov
Ex-Im Bank is focused on helping U.S. small businesses and has a dedicated team to assist them. In fiscal 2011 Ex-Im Bank supported a record $6 billion in small business exports. On average, 87% of transactions benefit small business exporters of U.S.-made goods and services and no transaction is too small.
How Ex-Im Bank Can Assist
Making international sales is challenging enough without worrying about getting paid. Ex-Im Bank’s export credit insurance policy provides payment coverage for both commercial risks (such as buyer default) and political risks (such as war). The Bank protects sales to a single buyer or an entire export portfolio.
Extend Credit to Buyers
The insurance also enables exporters to sell on competitive “open account” terms, instead of requiring cash-in-advance or costly and complicated letters of credit. Businesses will no longer forego sales because they cannot match the credit terms offered by global competitors. Furthermore, insured foreign receivables may be used to increase an exporter’s borrowing base with a lender, thereby accelerating cash flow.
Ex-Im Bank can help U.S. companies obtain vital loans to fulfill export orders. An Ex-Im Bank guaranteed credit line may be used to purchase finished products, pay for raw materials, supplies, labor and overhead, and even cover standby letters of credit used as performance or bid bonds. The Bank’s guarantee turns an exporter’s inventory into eligible collateral for the lender.
Foreign buyers may obtain competitive financing (with extended repayment terms) to buy U.S.-made capital goods and services.