An overview of post-export financing and how Ex-Im Bank can assist exporters. This article is part of "A Basic Guide to Exporting", provided by the U.S. Commercial Service, to assist companies in exporting.
Last Published: 10/20/2016
Pre-export Financing
The working capital guarantee enables lenders to provide the financing that an exporter needs to purchase or produce a product for export, as well as to finance short-term accounts receivable. If the exporter defaults on a loan guaranteed under this program, Ex-Im Bank reimburses the lender for the guaranteed portion—generally, 90 percent of the loan—thereby reducing the lender’s overall risk. For qualified loans to minority, woman-owned, or rural businesses, Ex-Im Bank can increase its guarantee coverage to 100 percent. The working capital guarantee can be used either to support ongoing export sales or to meet a temporary need for cash flow arising from a single export transaction. 

The working capital guarantee offers generous advance rates, so exporters can increase their borrowing capacity. Rates apply in:
  • Inventory—up to 75 percent advance rate (including work-in-process—that is, material that has been released to manufacturing, engineering, design, or  other services)
  • Foreign accounts receivable—up to 90 percent advance rate guaranteed working capital loans are secured by export-related accounts receivable and inventory (including work-in-process) tied to an export order. (For letters of credit issued under a guaranteed loan, Ex-Im Bank requires collateral for only 25 percent of the value of the letter of credit.)


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Export Financing