International Finance: General FAQs on International Finance
How can I collateralize my Letters of Credit backing prepayments from my buyer?
The Export-Import Bank's working capital financing provides companies with the liquidity to accept new business, grow international sales and compete more effectively in the international marketplace. The working capital loans are made by commercial lenders and backed by the agency's guarantee.
Importantly, for letters of credit issued under the guaranteed loan, Ex-Im Bank only requires collateral for 25% of the value of the letter of credit. Furthermore, for eligible U.S. exports, the collateral coverage is at generous rates (inventory up to 75% advance rate including work-in-process and foreign accounts receivables up to 90%). We encourage you to first contact an authorized lender for details.
View the Financing Export Transactions lesson under the Export Tutorials section of this website for more information.
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