iF October DIGITAL September-October 2020 | Page 47

orders and take on new international
business. With EXIM’s guarantee,
U.S. companies can borrow
more with the same collateral as
well as secure performance and bid
bonds without tying up significant
funds. Essentially, EXIM works
with lenders to provide a loan
guarantee that backs the borrower’s
debt in the event something goes
awry. Further, under the agency’s
COVID-19 relief measures, EXIM
can provide for an increased guarantee
coverage option to 95 percent
under the Working Capital
Guarantee Program for a limited
time.
• COVID-19 relief measures, which
have been implemented since the
onset of the COVID-19 (coronavirus)
pandemic to assist U.S. exporters
and financial institutions,
including U.S. small businesses.
These measures, with provisions
for both export credit insurance
and working capital facilities, include
waivers, deadline extensions,
streamlined processing, and enhanced
flexibility.
Benefits of EXIM’s Financing Solutions
EXIM’s financing facilities enable
buyers of U.S. goods and services to
make selections based on the quality
of the offerings, rather than on financing
terms. Working with EXIM,
U.S. companies can further grow
their international customer base,
showcase the quality of “Made in the
USA” goods and services, monetize
their valuable intellectual properties,
and support U.S. jobs while significantly
reducing the risk of nonpayment
on international sales.
The benefits of EXIM’s export financing
and risk mitigation solutions
through include:
• Open account credit terms: Export
credit insurance allows businesses
to extend open account credit
terms to foreign buyers. Requiring
payment in advance can deter sales,
but with EXIM support, U.S. manufacturers
can confidently provide
payment terms of up to 180 days.
Buyers tend to buy more when offered
terms since cash-in-advance
can adversely affect their cash flow.
• Protection against buyer nonpayment:
Export credit insurance reduces
the risk of U.S. companies
not getting paid due to commercial
and political risks. Getting paid is
often cited as the primary reason
why companies are wary of exporting.
Policies can cover a single
buyer, select buyers, or an entire
portfolio.
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