How it Works: EXIM Bank Working Capital Loan Guarantee


Meet Gary
Gary owns a solid, successful business Where he manufactures automobile parts
Gary wants to expand his business by selling to a foreign buyer
But lacks the cash flow to produce more equipment He hopes to borrow the funds to cover the
costs of labor and materials needed to meet demand.
So Gary goes to his bank for a loan…a working capital loan.
He expects to put up his inventory and future receivables as collateral for the loan.
However, the bank isn’t comfortable making the loan because Gary’s collateral is
export-related But Gary’s not of luck.
The Export-Import Bank can help. Where he learns about their Export Finance
programs and services. Exim offers to work with his bank, via the
Exim “Working Capital Loan Guarantee” What is a loan guarantee?
EXIM will back 90% of the bank’s loan to Gary.
The bank is now guaranteed repayment So with the guarantee in place and the foreign
risks minimized the bank now agrees to Gary’s loan.
With this EXIM works directly with Gary’s bank.
Now Gary has the funds to fulfill the sale and is able to enter new markets and grow
his business.

Paul Whisler

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