Export-Import Bank financing functions as a safety net for international business deals facing foreign default for nonpayment. The Export-Import Bank of the United States (EXIM Bank) functions as a safeguard for American jobs and helps finance the export of American goods on the global marketplace.
How Does the EXIM Bank Work?
The EXIM Bank functions as a private-sector support for American exporters. Selling goods on the international marketplace carries numerous risks, and the EXIM Bank works to offer the flexibility and security necessary for conducting business internationally. In the 2015 fiscal year, almost 90% of all EXIM Bank transactions directly supported small businesses in the United States.
Private-sector lending for trade financing is crucial for American relevance in the global economy, and the EXIM Bank was designed specifically so that it did not create competition with American lenders. This means EXIM Bank is intended specifically to support businesses that may be unable to work with private trade finance lenders. The EXIM Bank has no restrictions on the size of transactions it will manage, making it a viable option for any size business.
What Does the EXIM Bank Do?
Despite its name, the EXIM Bank focuses on U.S. exports. It’s also not exactly a bank. Established in 1934 as the official export credit agency of the United States, the primary function of the EXIM Bank is to support the export of American goods through several services and export financing products, including:
• Loans
• Working capital guarantees
• Loan guarantees
• Export credit insurance
The flexibility that these services offer to American businesses has allowed U.S. exports to flourish in recent years, and small businesses have a much easier time selling their goods internationally. They also have greater peace of mind knowing their exports are secure and insured.
The EXIM Bank has several export financing programs that may work for any size operation for any transaction. Exporters may not have the liquidity to handle an unusually large order and may miss out on huge profits if they aren’t able to cover the costs of shipping.
In the case of foreign buyer nonpayment or inability to pay due to circumstances beyond their control, export-import bank financing functions as a safety net. Drake Finance works with the EXIM Bank to offer American exporters the greatest degree of confidence and security when trading in the global marketplace.
Drake Finance is committed to a more efficient global trade network and can provide security and peace of mind for American exporters to conduct their business with confidence and to expand more aggressively into emerging markets and the international community. With export-import bank financing, even small businesses can operate on a global level to find success.
