Provide Medium-Term and Long-Term Financing
Lenders often will not provide medium- and long-term financing to buyers in emerging markets. The political and commercial environments in many foreign markets translate into high risk for many lenders. Moreover, credit from in-country lenders is often unavailable or prohibitively expensive to buyers. Thus, without financing, a U.S. exporter will not be able to make the sale. Ex-Im Bank's medium- and long-term financing support fills this void and enables U.S. exporters to compete with confidence worldwide.
Medium-Term Financing
Ex-Im Bank's medium-term insurance and guarantees support financing for capital goods and services enabling U.S. exporters or lenders to offer extended credit terms to their international customers, including repayment terms of up to 7 years for financed amounts of $10 million or less. The length of the repayment term Ex-Im Bank supports depends on the dollar size of the transaction, the useful life of the items, and the country of the buyer.
Features
- A 15% cash payment is required from the international buyer
- Ex-Im Bank covers 100% of the 85% financed portion in the event of a commercial or political payment default
- The interest rate is typically a floating market rate of interest. Fixed-rate financing is also available
- To access medium-term financing, Ex-Im Bank charges a one time Exposure Fee (that may be added to the financed amount)
- Financing in euros, rand, or other hard currencies may be supported
Medium-Term Leasing
Ex-Im Bank supports competitive medium-term finance leases. Support of finance leases is important since some foreign buyers of U.S. capital goods prefer lease financing as an alternative to traditional installment loan financing. Ex-Im Bank will guarantee lease financing of U.S. goods and services to creditworthy international lessees, when financing is otherwise not available.
Publications:
Long-Term Financing
Ex-Im Bank also supports long-term financing for transactions or projects that are over $10 million. Repayment terms are typically up to 10 years, but can be up to 12 years for large civil aircraft and non-nuclear power plants and sometimes 15 years for nuclear power plants and certain renewable energy and water sector exports. Call 202.565.3946 for more information.
Updated: October 10, 2007 |
