
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.