Worldwide Project Development & Financial Services   

Pre-Export Financing

This is a loan guarantee on principal and interest for export-related inventory and accounts receivable. The guarantee can be up to 90% of the lender’s loan amount to the exporter.

This is a valuable tool to increase exportersí access to credit during the critical production phase prior to actual exports.

These guarantees are typically for one year or less, but in exceptional cases can be for up to 36 months.

The benefits for exporters under the pre-export financing are substantial:

  • Increase sales and profit
  • Expand collateral base:
    • Export-related inventory, including work in progress - as it supports instruments such as stand-by L/C and performance bonds
    • Export-related accounts receivables

The types of Exporters supported by these guarantees are:

  • Manufacturers
  • Trading companies
  • Wholesalers and distributors
  • Service companies

Eligible US Exporters

  • Goods must have at least 50% US content to guarantee the entire transaction
  • Exports must be manufactured in and shipped from the US
  • There should be a reasonable assurance of repayment; this is ascertained by:
    • Minimum of one year operating history
    • Debt service ability
    • Adequately capitalized relative to requested loan amount
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