EX-IM Trade Financing Reauthorized: Low Cost Financing Solution
Low cost financing, even for the well established companies, is a common challenge for feed manufacturers and processors around the world.
After a 5 month hiatus due to political issues, the Export-Import Bank of the United States has been reauthorized by the US Congress and can start backing loans again to foreign buyers (except for those in excess of US$10MM). Because many exporters are small and medium sized businesses, they rely on EX-IM Bank to be competitive in the global marketplace. As a US Exporter who has won business due to EX-IM loans, it’s a positive to know that the program will continue. The program offers short, medium and long term loans to foreign buyers of US goods that are flexible and have only a few steps required in order to get approved.
Many of our customers are family owned or small businesses in other countries. They often times have only part of the funding required to purchase equipment. What the bank does is provide a low interest loan so the foreign customer can afford to purchase our equipment, or keep their cash for operational expenses and secure a loan for the entire equipment purchase. Another option is to be approved for a short term “loan” as a 6 or 12 month insured receivable. This is our most common use of Ex-Im by our customers. Our company works with a broker than can find the right solution for your specific financing needs. Our CEO Kevin Kacere summarizes the different EXIM Bank programs here and I invite you to read his blog to get a brief overview of the programs offered.
If you are outside the U.S. and looking at investing in an extrusion plant or expanding your current operation, please contact us to discuss financing solutions, including the option of financing through EX-IM Bank.
