Here are some services offered by the Export-Import Bank of the United States, an independent U.S. Government agency that helps finance the overseas sales of U.S. goods and services.
First, let me state that I have no idea what the financial funding arrangements, including bank guarantees, are that HGRM has. Perhaps they are using this, perhaps not. I found it interesting, nonetheless, and thought some of you might also.
'Ex-Im Bank's mission is to create jobs through exports. It provides guarantees of working capital loans for U.S. exporters, guarantees the repayment of loans or makes loans to foreign purchasers of U.S. goods and services. Ex-Im Bank also provides credit insurance that protects U.S. exporters against the risks of non-payment by foreign buyers for political or commercial reasons. Ex-Im Bank does not compete with commercial lenders, but assumes the risks they cannot accept. It must always conclude that there is reasonable assurance of repayment on every transaction financed.'
'In over 60 years, Ex-Im Bank has supported more than $300 billion in U.S. exports.'
'To qualify for Ex-Im Bank support, the product or service must have at least 50 percent U.S. content and must not affect the U.S. economy adversely.'
'Two of its major goals are to incease the export o environmental goods and services...and to expand the number of U.S. small businesses using Ex-Im Bank programs'
'Ex-Im Bank has co-financed projects with the U.S. Agency for International Development, the World Bank, and regional development banks.'
'1. Working Capital Guarantees cover 90 percent of the principant and interest on commercial loans to creditworthy small and medium-sized companies that need funds to buy or produce U.S. goods or services for export..Guaranteed loans generally have maturities of 12 months and are renewable'
'2. Export Credit Insurance policies protect against both the political and commercial risks of a foreign buyer defaulting on payment. Short-term policies generally cover 100 percent of the principal for poiltical risks and 90-95 percent for commercial risks, as well as a specified amount of interest.'
'3. Guarantees of commercial loans to foreign buyers of U.S. goods or services cover 100 percent of principal and interest against both political and commercial risks of nonpayment.'
'4. Direct Loan provide foreign buyers with competitive, fixed-rate financing for their purchases from the United States.'
'Ex-Im Bank's loans, guarantees and medium-term insurance cover 85% of the contract price (100 percent of the financed portion). The foreign buyer is required to make a 15 percent cash payment. The fees charged by Ex-im Bank for its programs are based on the risk assessment of the foreign buyer or guarantor, the buyer's country, and term of the credit.'
'..programs are often used in conjunction with each other, e.g., the Working Capital Guaranted Program with Insurance.'
I received this information from the Import-Export bank located in Miami, which--interestingly--is located 20 blocks down the street from HGRM. This at least gives a glimpse into one of the options available to small companies doing business with foreign countries. I just think it is interesting.
Again, I have no idea what bank(s) HGRM has been working with.
Ted
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