Exporting Basics: Getting Paid
Where can I find sources of export financing?
The first source for export financing is your regional and local bank. Contact your local bank to see what kind of programs they provide. Other sources include:
The Small Business Administration (SBA) offers loan guarantees through their Export Working Capital Program (EWCP) to help small businesses export. SBA's EWCP provides transaction-specific financing for loans of up to 1.5 million. Exporters may use this program for pre-export financing of labor and materials, financing receivables generated from these sales, and/or standby letters of credit used as performance bonds or payment guarantees to foreign buyers. SBA offices are located throughout the U.S.
The Export-Import Bank of the United States offers a Working Capital Guarantee Program for working capital loans of any amount. The program can be used to purchase raw material and finished products for export, pay for materials, labor and overhead to produce goods and/or provide services for export, and cover standby letters of credit serving as bid bonds, performance bonds or advance payment guarantees. The Exim Bank also has an Export Credit Risk Program to protect against both the political and commercial risks of a foreign buyer defaulting on payment. In addition, Ex-Im guarantees can be obtained on commercial loans to foreign buyers of U.S. goods or services to cover 100 percent of principal and interest against both political and commercial risks of nonpayment. In some cases, Exim also offers direct loans to foreign buyers with competitive, fixed-rate financing for their purchases from the United States.
« Back to Exporting Basics