EXPORT WORKING CAPITAL GUARANTEE PROGRAM

Dependable sources of working capital are key to a company’s financial stability and expansion. The Working Capital Guarantee Program (WCGP) helps maximize your company’s borrowing potential, allowing you to build your export business with the support of EX-IM Bank.

Challenges

Foreign markets often represent attractive sales opportunities. However, lenders may be unwilling to support export sales due to the added foreign risk. As a result, export sales opportunities can be lost due to shortfalls in working capital financing.

Benefits

Convert your export-related accounts receivable and inventory into cash

The WCGP provides the liquidity needed to fund the growth of your export business allowing you to compete more effectively in the international marketplace.

Expand your access to financing

Under the WCGP, the advance rates are higher than most secured lenders typically offer: up to 90 percent for export-accounts receivable and 75 percent for export-related inventory (including work-in-process and raw materials).

Delegated Authority

With “delegated authority,” Wachovia can expedite the loan process by committing the EX-IM Bank guarantee without their prior approval.

Flexibility

The WCGP supports the export of both goods and services. Loans can be structured on a revolving basis or to handle a large, individual export order. Sales to export distributors may also qualify.

Features

Liquidity

EX-IM Bank assumes 90 percent of the lender’s credit risk to your company, helping you obtain the financing your company needs.

Collateral

EX-IM Bank guaranteed working capital loans are secured by export-related accounts receivable and inventory destined for export.

WCGP Loans

These loans can be used to purchase raw materials and supplies and support overhead costs.

WCGP Qualifications

Exporters must have a one-year operating history and positive net worth. The goods or services must have at least 50 percent U.S. content and must be shipped from a U.S. port. Sales related to military/defense are excluded (with few exceptions).

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