• Working Capital Loan

The working capital loan program is designed to benefit U.S. Exporters and their suppliers through accounts receivable financing. The Ex-Im Bank provides a guarantee to a commercial bank, which bears the full faith and credit of the United States. The guarantee is for EXIM Bank provides a guarantee for 90% of the eligible invoices while the lender bears 10% risk. This arrangement allows the lender to efficiently maintain their relationships directly with the suppliers without Ex-Im Bank involvement.

The working capital loan is designed to inject liquidity in the marketplace and provide suppliers, particularly small businesses, with access to capital faster with a lower cost.

Suppliers can sell their accounts receivable to a lender to obtain early payment of invoices at a discounted rate. This helps them obtain cash quickly (often at lower rates that reflect the credit of the buyer) and increase liquidity to fulfill new orders. Exporters have the option to extend payment terms and obtain a working capital benefit without imposing undue financial hardship on their suppliers.

Benefits to the Small Business Supplier

|> Converts accounts receivable into cash and improves liquidity position

|> Obtains better rate based on the credit rating of the Exporter

Benefits to the Exporter

|> Allows flexibility in extending the terms for accounts payable

|> Provides an additional source of working capital funding – which will not be treated as debt on their balance sheet

Working Capital Loan – How It Works

|> U.S. Exporter or Foreign Importer apply for the Loan

|> Ex-Im Bank works with the existing supply chain finance platform of the Exporter

|> Exporter receives invoices from suppliers

|> Exporter sends a list of approved invoices to the lender electronically

|> Lender validates the list to verify the invoices that are eligible for discount and payment

|> Supplier of the U.S. Exporter selects the invoices for accelerated payment

|> All discounted invoices are paid by the lender to the supplier via ACH

Exporter Eligibility

|> Must be a U.S. – domiciled company that exports U.S. goods and services

|> Exported products must meet Ex-Im Bank’s Supply Chain Financecontent policy requirements

Benefits to the Small Business Supplier

|> Company must be U.S. – domiciled and supply goods/services to eligible U.S. exporters

|> At least 50% of the invoices’ value must be from suppliers that meet the SBA small business definition: see https://www.sba.gov/content/table-small-business-size-standards

Lender Eligibility

|> Lender must have an existing supply chain finance platform which is subject to Ex-Im Bank due diligence and approval