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EXIM Working Capital

Overview

EXIM’s Working Capital Loan Guarantee can empower exporters to unlock cash flow to fulfill sales orders and take on new business abroad. With EXIM support, exporters can borrow more with the same collateral, secure performance and bid bonds necessary to win projects, and increase their global competitiveness.

Use an EXIM Working Capital Loan Guarantee to:

  • Pay for materials, equipment, supplies, labor, and other inputs to fulfill export orders.
  • Post standby letters of credit serving as bid bonds, performance bonds, or payment guarantees.
  • Purchase finished products for export.

Benefits of an EXIM Working Capital Loan Guarantee:

  • Flexible financing for large contracts.
  • More attractive advance rates than conventional financing.
  • Obtain the line of credit quickly from a qualified lender with less red tape.
  • Inclusion of otherwise excluded collateral in borrowing base.
  • Lower collateral requirements for bid bonds, performance bonds, or advance payment guarantees.

How it Works

EXIM doesn’t replace an exporter’s bank; it works with lenders to provide a loan guarantee that backs the borrower’s debt in the event something goes awry. 
  • EXIM provides a 90% loan-backing guarantee to the lender, decreasing repayment risk and thereby increasing the lender’s willingness to extend a loan.
  • With an expanded borrowing base, small business exporters are able to borrow more with the same collateral.
  • The Guarantee can cover both multiple export sales and individual contracts.
  • EXIM can guarantee both revolving and transaction-specific facilities.
  • There is no minimum or maximum transaction amount.