Solutions Increasing Your Export Sales Trade Financing Solutions - - PowerPoint PPT Presentation

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Solutions Increasing Your Export Sales Trade Financing Solutions - - PowerPoint PPT Presentation

Trade Financing Solutions Increasing Your Export Sales Trade Financing Solutions Export-Import Bank of the United States Who We Are What We Do Ex-Im Bank is an independent agency of the United States Established in 1934


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Trade Financing Solutions Export-Import Bank

  • f the United States

Trade Financing Solutions

Increasing Your Export Sales

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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
  • 6 sales offices
  • Approximately 400 employees
  • Mission: Support U.S. exports in order to

create and sustain U.S. jobs

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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

Increase Your Export Sales

  • Minimize risk
  • Level the playing field
  • Supplement commercial financing
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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

Inventory Financing Short-Term Accounts Receivable Financing Medium-Term Financing Long-Term Financing Working Capital Guarantee Working Capital Guarantee

  • r Export Credit Insurance

Export Credit Insurance, Guarantees or Direct Loans Guarantees or Direct Loans

Your Needs Our Solutions

We Can Assist You!

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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-and medium-size

U.S. companies

  • Provides a guarantee to lenders for

export-related working capital

  • No minimum or maximum amount
  • Fully collateralized

Our Working Capital Guarantee

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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

Differences Between SBA and Ex-Im Bank Working Capital GTY.

  • Ex-Im does not have dollar value limitation.
  • Ex-Im has delegated lenders that can immediately

commit transaction.

  • Ex-Im does not require the debtor to be a small

business.

  • SBA does not have U.S. content or Military

restrictions.

  • SBA has lower fees.
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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

  • Allows exporter to offer short-term

credit directly to international buyers

  • Provides policies that protect the U.S.

exporter against foreign buyer default

  • Commercial Risks
  • Political Risks
  • Insured receivables can be financed

through assignment of policy to lender

Our Short-Term Insurance

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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

Key differences between Ex-Im Bank and Private Insurers.

  • Private insurers are profit motivated Ex-Im’s

mission is to support U.S. Exporters.

  • Ex-Im requires at least 51% U.S. content, private

insurers have no content restrictions.

  • Ex-Im is geared towards small exporters or very

large transactions private insurers generally gear themselves toward medium or large businesses.

  • Ex-Im coverage is available in excess of 150

countries including countries in Sub Saharan Africa, Eastern Europe, and the Middle East. Coverage of private insurers varies.

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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

Key Differences Continued

  • Underwriting policies vary
  • Pricing- Often the private sector may be cheaper

in better markets more expensive in poorer markets if they provide cover.

  • Minimum premiums Ex-Im does not have

minimum premium on exporter multi-buyer policies private sector generally does.

  • Insurance brokers can assist you in getting

various quotes, and evaluating and comparing the

  • quotes. At no cost to you
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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

  • Generally used for buyer financing of capital

equipment:

  • 1 to 5 year repayment, exceptionally 7 years and

< $10 million

  • 15% Advance payment, 85% financed amount

 Guarantees  Insurance  Direct loans

Our Medium-Term Financing

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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

Generally used for buyer financing

  • f very large items (aircraft) and

project finance:

  • Amounts over $10 million and > 7 years
  • 15% Advance payment:

85% financed amount

 Guarantees  Direct Loans

Our Long-Term Financing

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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

Medium and long term coverage

  • After 15% advance payment
  • 85% Financed amount is covered

100% for both principal and interest.

  • Interest rates are generally market

rates but are not capped.

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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 Exports (exceptions apply)
  • Foreign Content
  • Restricted Countries (political
  • r economic)
  • Economic Impact
  • Shipping
  • Creditworthiness and Additionality
  • Environmental

Just a Few Restrictions

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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

  • No Defense Articles or Services
  • Three Exceptions
  • Humanitarian purposes
  • Drug interdiction
  • Dual use items

Military Restrictions

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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

Foreign Content Restrictions

  • Ex-Im Bank is committed

to support the export sale

  • f goods and services of

U.S. origin.

  • Bank rules will vary

according to product (generally short-term financing follows a more flexible approach).

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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 conducts business in

many countries throughout the world

  • Restrictions may apply for political or

economic conditions

  • First step, check the Country

Limitation Schedule (CLS)

  • n the web.
  • X means support

is not available.

Coverage in Over 150 Countries

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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

Thomas P. Cummings Regional Director Northeast and Mid- Atlantic Regions (212) 809-2652 Fax(212) 809-2646 Mobile(917) 690-2851 1.800.565.EXIM www.exim.gov

For More Information