US EXIM Bank Incentives Most Exporters Miss
If you sell outside the U.S. and you’re not using EXIM, you’re probably leaving money and capacity on the table. Below is a blunt checklist of the high-impact programs and policy perks most teams should know cold. These are practical tools that de-risk receivables, unlock working capital, and help you win foreign bids without handing away price or terms.
Quick wins:
insure receivables up to 95%, borrow more on export AR/inventory under a 90% guarantee, offer buyer financing backed by EXIM, and use policy flexibilities in strategic sectors to outgun subsidized competitors.
1) Export Credit Insurance (ECI): Sell on open terms without sweating non-payment
- Coverage:
up to 95% on most private buyers under multi-buyer policies; sovereigns can reach 100%; bulk ag up to 98%. Single-buyer private coverage is often 90%.
- Cash flow:
insured AR is easier to borrow against and can replace L/Cs in many cases.
- Small business perks:
no application fee or annual minimum premium; a small refundable deposit to set up the policy.
2) Working Capital Loan Guarantee (WCGP): Borrow more against export AR & inventory
- Guarantee:
typically 90% to your lender on the export line; availability can include up to ~90% of export AR and ~75% of export inventory.
- Speed:
approvals often flow through Delegated Authority
lenders who can close without prior EXIM sign-off under set limits.
- Use cases:
fund build, materials, and fulfillment for confirmed export orders, or stand up a revolving export line.
3) Supply Chain Finance Guarantee (SCFG): Keep suppliers whole, keep production moving
- Structure:
EXIM guarantees 90% of eligible receivables in approved SCF programs, so banks can advance earlier to your suppliers while you protect working cash.
- When it helps:
big anchor exporters looking to stabilize tier-1 and tier-2 suppliers during tight liquidity cycles.
4) Foreign-Buyer Financing: Loan Guarantees and Direct Loans to win the deal
- Loan Guarantee:
bank lends to your overseas buyer with an EXIM guarantee, commonly covering 85% of the U.S. contract value (buyer puts 15% down).
- Direct Loan:
EXIM lends fixed-rate at CIRR; typical maximum tenor up to 15 years, with certain climate and nuclear projects eligible up to 22 years.
- Extras:
local costs can be financed up to ~40–50% of the export contract in many cases; foreign-currency guarantees let buyers repay in their revenue currency.
| Program |
What it does / Typical edge |
| Export Credit Insurance |
Insure receivables up to 95% (policy-dependent); offer open terms safely; borrow against insured AR. |
| Working Capital Guarantee |
90% guarantee to your lender; increases advance rates on export AR/inventory; DA lenders move faster. |
| Supply Chain Finance Guarantee |
90% guarantee on eligible approved payables/receivables in SCF to support suppliers without crushing your cash. |
| Loan Guarantee to Buyer |
Back your buyer’s bank loan for ~85% of contract; you get paid at shipment; buyer pays over time. |
| Direct Loan to Buyer |
Fixed-rate CIRR financing from EXIM; long tenors; can include local costs and capitalized IDC. |
5) Policy Flexibilities You Can Leverage
- CTEP (China & Transformational Exports Program):
extended repayment terms and exceptions to standard policy in 10 strategic sectors (AI, semis, renewables, etc.). Sub-51% U.S. content deals can qualify with a credible U.S. jobs plan.
- Make More in America:
domestic financing tool for U.S. projects tied to future exports, with priority for small business, clean energy, and transformational tech.
- Climate & nuclear tenors:
certain climate adaptation/mitigation and nuclear projects can run up to 22-year maximum repayment terms.
Small Business Corner
- Multi-buyer “small business” policies come with streamlined pricing and a refundable ~$500 setup deposit; no annual minimum premium.
- Express/standard ECI options exist; discretionary credit limits and pay-as-you-ship premium mechanics reduce friction.
- Most WCGP transactions route through DA lenders for quicker execution.
6) Who Qualifies (in broad strokes)
- U.S. company with exportable goods/services and verifiable U.S. content (classic rule for medium/long-term is 85% financed with 15% buyer cash; content rules vary by program).
- Reasonable credit story on the foreign buyer/offtaker, or a bank/sovereign structure that passes underwriting.
- “Additionality”: EXIM steps in where private financing isn’t reasonably available on competitive terms.
7) Common mistakes that cost you
- Waiting for an L/C when open-account insurance would have won the order faster.
- Under-borrowing because your bank won’t give advance rates on export AR/inventory without a guarantee.
- Skipping buyer financing in bids. Loan guarantees/direct loans often swing award decisions.
- Ignoring CTEP or climate tenor flex when competing against subsidized rivals.
8) Fast path to engage
- Map your need: insure AR, raise working capital, or offer buyer finance.
- Pick the path: ECI, WCGP, SCFG, loan guarantee, or direct loan.
- Loop in a Delegated Authority lender for WCGP or your relationship bank for buyer finance.
- Prepare a clean pack: company financials, buyer info, contract terms, content breakdown, shipment plan.
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This article is informational. EXIM support depends on program eligibility, credit approval, content rules, and applicable laws. Terms vary by transaction.