Hawai'i's Import/Export Resource Center

FTZ9

Financing
Financing

Financing

ExIM Bank LogoForeign-Trade Zone No. 9 is part of the Export-Import Bank of the United States’ (Ex-Im Bank) City-State Partner Program which assists small businesses to better understand the export financing products offered by the Ex-Im Bank. The Ex-Im Bank is the official export credit agency of the United States. Ex-Im Bank’s mission is to assist in financing the export of U.S. goods and services to international markets.

With more than 78 years of experience, Ex-Im Bank has supported more than $456 billion of U.S. exports, primarily to developing markets worldwide.

Ex-Im Bank enables U.S. companies — large and small — to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.

Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. We assume credit and country risks that the private sector is unable or unwilling to accept. The Bank also helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters.

Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. On average, 85% of its transactions directly benefit U.S. small businesses.

How Ex-Im Bank Can Assist

Risk Protection – Making international sales is challenging enough without worrying about getting paid. Ex-Im Bank’s export credit insurance policy provides payment coverage for both commercial risks (such as buyer default) and political risks (such as war). The Bank protects sales to a single buyer or an entire export portfolio.

Extend Credit to Buyers – The insurance also enables exporters to sell on competitive “open account” terms, instead of requiring cash-in-advance or costly and complicated letters of credit. Businesses will no longer forgo sales because they cannot match the credit terms offered by global competitors. Furthermore, insured foreign receivables may be used to increase an exporter’s borrowing base with a lender, thereby accelerating cash flow.

Working Capital – Ex-Im Bank can help U.S. companies obtain vital loans to fulfill export orders. An Ex-Im Bank guaranteed credit line may be used to purchase finished products, pay for raw materials, supplies, labor and overhead, and even cover standby letters of credit used as performance or bid bonds. The Bank’s guarantee turns an exporter’s inventory into eligible collateral for the lender.

Term Financing – Foreign buyers may obtain competitive financing (with extended repayment terms) to buy U.S.-made capital goods and services.

www.exim.gov/customcf/congressionalmap/state_map.cfm?state=HI