Free Online Course in International BusinessEx-Im Bank's Loan Guarantee ProgramEx-Im Bank provides competitive financing for international buyers and assists an exporter by making available a sale that would not be possible without the program. The buyer must be credit-worthy and can be from either the private or public sector. The guarantee is extended to cover purchases of US goods and services. The buyer can obtain competitive financing when financing is otherwise not available for longer terms. The benefits enable foreign buyers to get competitive term financing from a US source that would not be available from a local source in their country. The guarantee covers 100% of commercial and political risks. There are several financing options and repayment terms. The major factor that benefits both a buyer and the seller is that there are no transaction size limits and both medium-term and long-term financing are available. The credit standards required to qualify can vary depending on the size of the transaction. A buyer must meet these standards in order to qualify, but the use of guarantors or other credit enhancements can be used in order to qualify. Eligibility requirements involve more than just the credit quality of the buyer. Financing is available for refurbished equipment, software, certain local costs, banking and legal fees. Military or defense items are generally not eligible nor are sales to military buyers (with certain exceptions). There are limitations on foreign content that must be evaluated against each project. The goods must be shipped from the United States to an international buyer that is covered under Ex-Im Bank's country limitation schedule. Prior to approval Ex-Im Bank will evaluate the economic and environmental impact of the project.Ex-Im Bank's Finance Lease Guarantee ProgramEx-Im Bank supports competitive medium-term financing structured as finance leases under similar conditions as the loan guarantee programs. Only finance leases as defined by the International Accounting Standards qualify. Finance leases are defined as the substantial transfer of all risks and benefits of ownership to the lessee with full amortization and no residual value at the end of the lease.Ex-Im Bank's Direct Loan ProgramEx-Im Bank assists exporters by providing fixed-rate loans to creditworthy international buyers under similar conditions as the loan guarantee programs.
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