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Financing Your Exports May 25, 2011

Financing Your Exports May 25, 2011. Mission – create and sustain jobs by increasing U.S. export sales Official Export Credit Agency (ECA) of the U.S. Government since 1934 Self-sustaining FY 2010 Authorizations $24.5 Billion. Who We Are. Minimize exporters risk

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Financing Your Exports May 25, 2011

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  1. Financing Your Exports May 25, 2011

  2. Mission – create and sustain jobs by increasing U.S. export sales Official Export Credit Agency (ECA) of the U.S. Government since 1934 Self-sustaining FY 2010 Authorizations $24.5 Billion Who We Are

  3. Minimize exporters risk Strengthen U.S. competitiveness Supplement commercial financing Our Financing Makes the Difference

  4. Commitment to Small Business

  5. $5 Billion 2008 2009 2010 Authorizations in $ Millions FY 10 Small Business Growth • $5 Billion +12% • Authorizations +22% • 85% of All Transactions • No Transaction Too Small

  6. Should I enter that new market? When and will I get paid? How will I get cash to make the product? I made the big sale, but will my buyer be able to obtain financing? Taking the Fear Out of Exporting

  7. Manufacturing Construction Medical Mining Power-generation Aircraft and Avionics Services Renewable Energy Agribusiness Wholesale/Retail Oil Mining We Support a Variety of Industries

  8. Support in Over 155 Countries 1. Brazil 2. Colombia 3. India 4. Indonesia 5. Mexico 6. Nigeria 7. South Africa 8. Turkey 9. Vietnam

  9. Growing Your Sales and Minimizing Risks Your Need Ex-Im Bank Solution Working Capital Guarantee Funds to Fulfill Orders Receivables Insurance Extension of Credit Medium- and Long-Term Insurance & Loan Guarantee Buyer Financing

  10. Working Capital Guarantee • Funds to pay for raw materials, labor, supplies, etc. • 90% guarantee to lenders for export-related working capital loans • Transaction specific or revolving loans • No minimum or maximum amount

  11. Advances are supported by export-related: Inventory up to 75% Receivables up to 90% Term is generally one year (renewable) and may be up to three years. Supply Chain Financing (New) Working Capital Guarantee (cont.)

  12. Protects US 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 360 day terms Obtain additional financing Short-Term, Accounts Receivable Insurance

  13. Single or Multi-buyer Policies Small Business Policy Express Insurance (New) Short-Term, Accounts Receivable Insurance (cont.)

  14. Used to finance foreign buyers purchasing U.S. capital equipment: 85% financed, 15% cash down payment Repayment up to 5 years, exceptionally 7 years Amounts of $10 million or less Buyer Financing

  15. Financing can be accomplished through the following Ex-Im products: Loan Guarantees Export Credit Insurance Direct Loans (few) Buyer Financing (cont.)

  16. Making more credit available with new products Increasing outreach Enhancing the small business web portal Streamlining operations to reduce turnaround time Building stronger distribution partnerships to reach more exporters Striving to Do More

  17. Next Steps Consult with an Export Finance Manager: Call 800.565.3946 and press 2 at the prompt. www.exim.gov/smallbusiness

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