trade financing solutions export-import bank of the united states increasing your export sales…...
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Trade Financing Solutions
Export-Import Bank
of the United States
Increasing Your Export Sales…
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 DoWho 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 BusinessSmall 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 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 GuaranteeSolution 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 GuaranteeWorking 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 GuaranteeWorking 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 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
Export Credit Insurance
Short-Term Policies (up to 180 or 360 day terms)
Medium-TermPolicies (for capital equipment sales with 1-5 year terms)
Single-Buyer OR Multi-Buyer basis
Special Policies
* Small Business
* Environmental
* Services
* Leases
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 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
Export Credit InsuranceExport Credit Insurance
Eligible Products *Goods produced in and shipped from the US
*Services performed by US-based personnel
*For ST, products must be at least 51% US content, including labor but excluding mark-up
*For MT, products must be at least 85% US content, including labor but excluding mark-up
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 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
Export Credit Insurance
Small Business Policy
Your company must qualify as “small business” by SBA definition
Export credit sales must be under $5 million
Must be in business at least 1 year and have financial statements
Must insure ALL export credit sales (except sales on CILC and CIA)
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 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
Export Credit Insurance
Small Business Policy
95% commercial risk and
100% political risk coverage
No deductible
Fixed rate schedule with
no minimum premium !
Buyer credit limits in your policy mean less pre-approvals by Ex-Im Bank
Monthly shipment / premium reporting
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 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
Export Credit Insurance
Multi-Buyer Policy For experienced exporters with over
$5 million in annual export credit sales
Must insure ALL export credit sales
You select the coverage option:
* 90% commercial and 100% political
OR * 95% for both types of risk
Buyer credit limits in your policy mean few pre-approvals by Ex-Im Bank
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 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
Export Credit Insurance
Multi-Buyer Policy
First-loss deductible applies
Premium rates are calculated based on your portfolio risk (country mix and length of credit terms)
Monthly shipment / premium reporting
No minimum annual premium!
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 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
Export Credit Insurance
Short-Term Single-Buyer Policy
Insures single or multiple shipments to ONE buyer
12-month maximum policy period
Risk-based premium rates
No deductible
Varied minimum premiums apply, depending on type of buyer
$1,000 minimum for “small business”
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 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
Export Credit Insurance
Short-Term Single-Buyer Policy
Equalized coverage for commercial and political risks:
*100% for sovereign obligors
*95% for L/C transactions
*90% for private sector obligors
*98% for bulk agricultural products
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 FinancingSolution 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 FinancingSolution 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 RestrictionsJust 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 RestrictionsMilitary 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 CountriesRestricted 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 InformationFor More Information
SHARYN H. KOENIG Business Development Officer 212-809-2653 E-MAIL: [email protected]