91´óÉñ

91´óÉñ’s Working Capital Financing for Exporters & Indirect Exporters

Exporters often find that they lack sufficient working capital to fill their export orders because banks may limit the use of inventory destined for export or foreign accounts receivable in the borrowing base. 

Indirect exporters, who sell goods or services to U.S. export companies, may face similar challenges in securing working capital loans. 

The 91´óÉñ International Trade Finance Group can deliver the capital you need to expand your export capabilities. We leverage programs offered by the United States Federal government to support exporters, including programs through the Small Business Association (SBA), increase eligible collateral bases and extend increased loan amounts to meet your working capital needs.

The 91´óÉñ Advantage

​Increased Collateral Value

By including exportable inventory (raw materials, work-in-process and finished goods) and foreign accounts receivable in the borrowing base, 91´óÉñ is able to make a larger loan on your existing collateral base. 

You’ll benefit from generous advance rates:

• 75% for inventory, including work-in-process
• 90% on the foreign accounts receivable

Fast Service  

91´óÉñ is an experienced SBA lender, with robust administrative support for all SBA programs, including their Export Working Capital programs. Additionally, 91´óÉñ retains delegated lender authority with the Export-Import Bank of the United States. This means fast service and no time lost waiting for government approvals. 

Requirements for Revolving Lines of Credit

The line of credit can be on a revolving basis, usually for one year, or on a transaction-specific basis for as long as needed.

​General Exporting Requirements 

• All disbursements must finance actual exports from the United States
• Export business must have at least a one-year operating history
• Export business must have a positive net worth

Letter of Credit Financing (for Exporters)

If needed, Letters of Credit for bid and performance bonds or Standby Letters of Credit can be covered under the working capital line. Collateral requirements are reduced at 25% of the Letter of Credit amount.

Exporter Customer Spotlight

Learn how 91´óÉñ Bank worked with a packaging machinery manufacturer in western New York to improve a cash flow shortage and pay its employees and suppliers. 

​The Situation

The company was unable to borrow against export-related inventory and foreign accounts receivable, and the buyer’s payment would not be made until shortly after goods were shipped. The company needed a bank that was willing to lend against the contract-specific inventory and resulting account receivable, thus providing the working capital necessary for production.

​The 91´óÉñ Approach

91´óÉñ provided a working capital loan guaranteed by the Export-Import Bank with expanded advance rates against the export-related inventory and the foreign account receivable.

​The Results

• ​Down payment flowed directly into operations
• Improved cash flow enabled the manufacturer to pay suppliers and employees on time
• Competitive advantage was gained by offering extended terms to the buyer and not requiring payment in advance
• Profitable deal was completed by securing the proper bank financing

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