Eximbank is an independent U.S. government agency that finances goods and services from the United States. Often, Eximbank is used when private finance institutions are unlikely or unwilling to lend to foreigners buying U.S. goods due to high risk. Eximbank guarantees protect private loans to foreign buyers, however, one requirement is a 15% cash downpayment. This downpayment can be privately financed and Eximbank will guarantee 100% of the loan. Rates are competitive and can help a U.S. exporter capture a share of the market.
Interest rates on Eximbank loans are determined by the country classification adopted in the OECD (Office for Economic Cooperation and Development).
Your quote must be accepted and approved by Eximbank and the U.S. participating bank.
Some key points:
- Many different types of Eximbank financing programs are available
- Administrative costs can be included into the export quote
- Eximbank financing can make the difference in acquiring the sale
There are specific procedures and documents required, but these processes are not much more difficult than a standard letter of credit. Be sure to consider Eximbank financing when you are in a difficult market.