Title: ExIm Bank U.S. Exporter Product Overview Video Presentation
1Ex-Im Bank U.S. Exporter Product
Overview Video Presentation
2Ex-Im Bank 101
3Who We Are What We Do
- Ex-Im Bank is an independent agency of the United
States government - Established in 1934
- Headquartered in Washington, DC
- 5 regional business development offices plus 2
satellite locations in CA (San Diego and San
Francisco) - Mission Support US exports in order to create
and sustain US jobs
4Ex-Im Bank Regional Offices
New York
San Francisco
Chicago
Newport Beach
San Diego
Houston
Miami
5Eligibility Criteria
- No Defense Articles or Services, or Military
Buyers - Exceptions may be made for humanitarian purposes,
drug interdiction, dual-use items
6Eligibility Criteria
- US Content
- 51 for short-term transactions
- 85 for medium-term transactions
- Services must be performed by US-based personnel,
either in the US or in the host country
7Eligibility Criteria
- Country Eligibility
- Support available in over 155 countries
- Restrictions may apply for political or economic
reasons - Refer to the Country Limitation Schedule (CLS) at
www.exim.gov on the homepage under Shortcuts
8How We Help Increase Your Export Sales
- Minimize risks
- Level the playing field
- Supplement commercial financing
9Foreign Export Credit Agencies
Your foreign competitors have similar support
- EDC Canada
- ECGD UK
- Coface France
- EulerHermes Germany
- JBIC Japan
- Sace Italy
- KEIC, Keximbank S. Korea
- OeKB Austria
- Efic Australia
10Small Business IS Our Business
- 86 of all Ex-Im Bank transactions supported
small business exports! - 90 of total working capital guarantees -- (990
million) - 90 of total short-term insurance policies --
(2.1 billion) - MT loans and guarantees -- 275 million
- 525 million in working capital guarantees and
export credit insurance supported exports by
minority or woman-owned businesses
11FY 2008 at a Glance
- Total Authorizations 12.6 billion
- Major Sectors
- Transportation 4.7 billion
- Environmental 82 million
- Energy 2.0 billion
- Agriculture supported 1 billion in export
value - Services supported 1.6 billion in export value
12Trade Terms as a Spectrum of Risk
- Seller Risk Trade Terms Buyer
Risk - High
Low - Open Account
- Cash Against Documents
- Sight Letters of
Credit - Usance / Deferred Letters of Credit
- Payment in Advance
-
- Low High
13Ex-Im Bank Support Covers the
Spectrum
Pre-Export Financing
Post-Export Financing
InsuranceGuaranteesDirect Loans
Working Capital Guarantee
14Pre-Export Financing
- Export Working Capital Guarantee Program
15Working Capital Guarantee (WCG)
- Assists small and mid-size companies in obtaining
working capital to produce or purchase US goods
and services for export - Provides a 90 guarantee of repayment (principal
and interest) on loans to exporters - May be set up as Transaction-Specific or a
Revolving Line of Credit
16Working Capital Guarantee
- No minimum or maximum amounts
- Loan supports advances made against
export-related inventory (including WIP) and
foreign receivables - Up to 75 advance rate on inventory, and up to
90 on foreign receivables
17Working Capital Guarantee
Transportation Freight Financing (TFF) Program
- Assists US-based transportation logistics
providers in obtaining working capital to
facilitate the export of commercial cargo on
US-flag ships - Uses accounts receivable as collateral for the
loan
18Working Capital Guarantee
Transportation Freight Financing (TFF) Program
- Funds may be used to provide services directly
related to the logistics involved in the export
of commercial cargo such as - Ocean, air, rail and truck freight
- Cargo and marine insurance
- Crating and packing
- Port drayage warehousing
- Terminal, forwarder and broker fees
19Working Capital Guarantee
- Asset-Based fully collateralized
- Personal guarantees are required of owner(s)
- Cost
- 100 application fee
- Up to 1.5 facility fee Reduced fee if
- Exports sales structured under L/Cs and/or
secured by export credit insurance exporters
financial ratios are within its industry median - A lower fee may be negotiated with a Delegated
Authority Lender (see list on www.exim.gov) - Interest rate is determined by the lender
20WCG Increases Borrowing Power
21Success Story Callidus Technologies LLC
- Challenge Small business, environmental
engineering firm needed cash to open stand-by
L/Cs (performance bonds) with the buyer as
beneficiary during production of the equipment. - Solution Lender funded a 5mm Ex-Im Bank
guaranteed working capital line of credit, with
the exporter collateralizing only 25 of the
stand-by L/C amount. - Result The firm was able to accept one of the
largest orders (16 million) in its history, and
added 70 new employees.
22Post-Export Financing
- Short-TermExport Credit Insurance
23Short-Term Export Credit Insurance
- Protects U.S. exporters against non-payment by
foreign buyers due to - Commercial Risks
- Political Risks
- Allows exporters to offer competitive credit
terms to foreign buyers - Generally up to 180 days, some products may
qualify for 360 day terms - Obtain additional financing
- Insured foreign receivables may be added to your
borrowing base by assignment of policy proceeds
(claim payments) to lender
24Risks Covered
- Commercial Risks
- Insolvency
- Bankruptcy
- Protracted default
- Political Risks
- Transfer risk
- War, revolution, insurrection, expropriation
- Cancellation of an import or export license
25Short-Term Export Credit Insurance
- Coverage
- Up to 180 days, exceptionally 360 days (for
capital equipment and bulk, unprocessed
agricultural products) - Commercial and political risks
26Short-Term Export Credit Insurance
- Lender Policies
- Bank Letter of Credit
- Financial Institution Buyer Credit
- Financial Institution Supplier Credit
- Foreign Dealer Insurance Policy (may roll to MT)
- Exporter Policies Multi-Buyer or Single-Buyer
27Small Business Multi-Buyer Policy
- Coverage
- No 95 commercial and 95 political
- Exporter must qualify as small business by SBA
definition, and - No more than 5 million in export credit sales
over the past 2 years - 1 year successful operating history
28Small Business Multi-Buyer Policy
- Must insure ALL export credit sales (L/C, CIA,
CAD, SDDP sales may excluded) - Refundable advance premium 500
- No deductible, no application fee,
pay-as-you-ship, no minimum premium requirement
29Small Business Multi-Buyer Premium Rates
(example)
- Per 100. of the gross invoice amount25 rate
reduction if used with Ex-Im/SBA Working Capital
Guarantee product!
30Standard Multi-Buyer Policy
- For experienced exporters with over 500 employees
and /or 5mm in annual export credit sales - Must insure ALL export credit sales(L/C, CIA,
CAD, SDDP may be excluded) - On a case-by-case basis, exporter may request to
exclude certain buyers (Reasonable Spread of
Risk)
31Standard Multi-Buyer Policy
- Coverage
- 95 for both commercial and political risks
- Buyer credit limits endorsed to policy (requires
minimal pre-approvals by Ex-Im Bank) - No minimum premium, pay-as-you-ship
32Success Story
Pharmaceutical Trade Services, Inc.
- Challenge Exporter of specialized prescription
drugs needed to extend competitive credit terms
to get larger orders - Solution The company used the small business
multi-buyer policy as a marketing tool to extend
net 45 day terms and increase sales - Result The companys export sales volume
increased over a 7 year period from 713,000 to
nearly 6 million, and the staff grew to 15
employees
33Single Buyer Insurance Policy
- Buyer-specific policy
- Insures a single sale or multiple sales to one
buyer - 90 coverage, both commercial and political 95
for letters of credit - Maximum policy period 1 year
- No deductible, No application fee
34Single Buyer Insurance Policy (cont.)
- Premium based on country and length of credit
terms (see rates on www.exim.gov) - Charged on sales volume (not credit limit)
- Pay-as-you-ship
- Reduced minimum premium for small business
exporters
35Single-Buyer Rates (private sector)(example)
36Post-Export Financing Solutions
- When a Foreign Buyer Needs Medium-Term or
Long-Term Financing
37Medium-Term Insurance and Guarantees
- Capital equipment sales and related services
- Lease transactions
- Finance Lease Insurance or Guarantee
- Operating Lease Insurance only
- Used equipment OK up to 3 year terms
- Buyer criteria per Medium-Term Credit Standards
- Minimum 3 year history
- Reliable financial statements (audited if credit
exceeds 1 million) - Buyer must meet certain financial ratios
38Medium-Term Insurance and Guarantees
- 15 downpayment required (may be financed by the
lender) - 100 coverage of the remaining 85 on both
principal and interest on loans made by lenders
directly to foreign buyers or on credit terms
extended to foreign buyers by exporters - 1 to 5 year repayment, exceptionally 7 years and
- Generally limited to buyers in developing markets
39Medium-Term Insurance GuaranteesPricing
Indications (example)
Private-sector, corporate borrowers, 5 year
tenor, for transactions under 10 million
- Refer to Fee Calculator on www.exim.gov
- One-time (flat) fee (may be financed)
- Under Guarantee program, a 0.125 p.a.
commitment fee applies (accrues 60-days from
approval date)
40Long-Term Financing Support
- Generally used for buyer financing in amounts
over 10 million and 7 to12 year repayment terms - Generally, large-ticket items (aircraft) and
project finance receive long-term support - 15 down payment / Ex-Im Bank supports 100 of
the remaining 85 (the financed amount) - Loan Guarantees
- Direct Loans
41Success Story PowerLight Corporation
- Challenge Designer/operator of grid-connected
solar power systems needed to provide equipment
and services for a Korean project, and arrange
attractive financing for the buyer - Solution A 7.8 million Ex-Im Bank medium-term
loan guarantee was put in place. The lender was
City National Bank of Los Angeles - Result PowerLight was the first exporter to
benefit from the new 15-year repayment terms
available to support U.S. exports for renewable
energy, water and hydroelectric power projects
42Success Story Le Tourneau Technologies, Inc.
- Challenge To provide competitive financing to
construct a mobile offshore oil and gas
exploration and drilling rig in Mexico - Solution A 54 million long-term Ex-Im Bank
guarantee (8.5 years) was issued to the lender,
BBVA Bancomer of Mexico City. Such a loan was not
available without Ex-Im Banks support - Result With the guarantee in place, Le Tourneau
won this 129 million contract over its
competitors
43Ex-Im Bank OnLine
- Our new, web-based application and transaction
management system makes it easier for exporters
and lenders to use Ex-Im Bank products - Automation of our primary business processes,
particularly for those most used by small
businesses - All exporter insurance policies (ST and MT)
- Lender policies for ST and MT buyer credits,
letters of credit, foreign dealer policy - MT guarantees under 10 million
44How Can We Help YOU?
- Expand international sales
- Boost borrowing power
- Speed cash flow
- Enter new markets
- Mitigate risks and losses
45Ex-Im Bank Partners
- Additional resources and assistance in
applying for Ex-Im Bank products areavailable
from - Insurance Brokers (see list on www.exim.gov)
- City/State Partners (see list on
www.exim.gov) - Delegated Lenders (see list on www.exim.gov)
- US Export Assistance Centers (USDOC and SBA)
46For More Information
- Call the Ex-Im Bank Regional Office near you
- New York 212-809-2650 (Northeast /
Mid-Atlantic) - Chicago 312-353-8081 (Midwest)
- Miami 305-526-7436
(Southeast) - Houston 281-721-0470 (Southwest)
- Newport Beach 562-980-4580 (West)
- San Francisco 415-705-2285
- San Diego 619-557-7091
- 800-565-3946 exim
- Web Site www.exim.gov