Export Finance & Insurance

The Trade Center offers a unique service through its Export Finance Program. Our office serves as a local representative for the Export-Import Bank of the United States (Ex-Im Bank) and as an intermediary for the U.S. Small Business Administrations (SBA) Export Working Capital Program. In addition to these agencies, the Trade Center assists companies interested in international finance programs offered by other organizations. The Trade Center staff is able to provide assistance and guidance in identifying suitable programs, compiling the documentation and preparing the applications, whether one is an experienced exporter or new to exporting. In order to best utilize these programs, we highly recommend that you contact the Trade Center during the early stages of entering a new market. This enables us to better evaluate your needs, determine your bank-ability, match financing programs and help you to more comfortably manage risk.

Some examples of how we can help you:

My company has used the same lender since the business was started. We are now involved in exporting, but our lender is not comfortable with financing an international transaction. What options are available?

Most export finance programs exist to facilitate a transaction when the lender is not able to cover the political and commercial risk. The Export-Import Bank of the United States (Ex-Im Bank) is an independent U.S. Government agency whose mission is to assist in financing the export of U.S. goods and services to international markets. Ex-Im will often assume risks that the private sector is unwilling or unable to accept. Ex-Im Bank offers loan guarantee programs to individual lenders which are backed by the full faith and credit of the U.S. Government. While there are banks that have experience with these programs, the Ex-Im Bank is willing to work with any lender. While some transactions are ineligible for Ex-Im Bank support, other public and private programs exist to manage risk.

A foreign buyer is interested in purchasing a large quantity of our product. I am concerned that we do not have sufficient working capital to cover the additional manufacturing costs and the buyer is not willing to pay in advance. Is there any assistance available?

Both the Ex-Im Bank and the SBA have Export Working Capital Programs. Short-term loan guarantees up to $1.5 million (or 90% of a loan, whichever is less) are administered through the SBA, while Ex-Im Bank guarantees larger amounts. The loan may be used to cover the costs associated with the purchase of inventory, raw materials, or the manufacture of a product for export. Advanced rates are available of up to 90% of foreign accounts receivable and up to 75% of a company's export related inventory.

We sell to our foreign buyers on open account terms. One of our buyers placed an order for five times the amount previously ordered. We have been shipping to this customer for over a year, but are concerned about the additional risk on this large order. How can we reduce the risk and serve the customer?

Export Credit Insurance would protect you against both the political and commercial risk of default by the foreign buyer. There are policies for repetitive sales, single buyers, and multiple buyers. Obtaining credit insurance allows you to extend credit directly to your foreign buyers while mitigating the risks associated with selling on open account terms. In addition, most lenders will only accept foreign accounts receivable as collateral if it is insured. Therefore, obtaining export credit insurance can serve to increase borrowing power as well as stabilize cash flows.