KOFA INTERNATIONAL CO.
Tel: 630.428.9750

Trade Finance

  • Arranging for the best available financing through Private, National, and International Banking Institutions
  • Preparing grant proposals and feasibility studies required by the funding institutions to secure grants and loans
  • Conducting studies to determine project feasibility
  • Arranging financing for equipment under AGOA program
  • Facilitating Export-Import Backed Loans from US Commercial Banks for qualified foreign importers


Loan Guarantee

Competitive Financing for International Buyers

Export-Import Bank assists exporters by guaranteeing term financing to creditworthy international buyers, both private and public sector, for purchases of U.S. goods and services. With Export-Import Bank's loan guarantee, international buyers are able to obtain competitive term financing from lenders when financing is otherwise not available or there are no economically viable interest rates on terms over one-to-two years.


Benefits:


  • Enables international buyers to obtain loans from lenders
  • Covers 100% of commercial and political risks
  • Flexible financing options and repayment terms
  • No limits on transaction size
  • Medium-term and long-term financing available


Eligibility


Export-Import Bank's guarantee of a lender's loan to an international buyer is generally used for financing purchases of U.S. capital equipment and services.

    Financing may also be available for:

  • Refurbished equipment
  • Software
  • Certain banking and legal fees (See Financing Fees for Ancillary Services)
  • Certain local costs and expenses (See Export-Import Bank Policies - Local Costs)


Military or defense items are generally not eligible nor are sales to military buyers (with certain exceptions).


Goods eligible for Export-Import Bank financing must meet Export-Import Bank's foreign content requirements (See Export-Import Bank Policies Foreign Content.)


Goods eligible for Export-Import Bank financing must be shipped from the United States to an international buyer. For transactions over $10 million and/or on terms of 10 years or more, there may be U.S. flag vessel requirements. (See Export-Import Bank Policies Shipping.)


Export-Import Bank can do business in most markets. However, we may be limited or unable to offer financing in certain countries and under certain terms. (See Country Information Country Limitation Schedule.)


Prior to approving certain transactions, Export-Import Bank will take into account the economic impact of a particular transaction (see Export-Import Bank policies Economic Impact) and the environmental effects (see Export-Import Bank policies Environment).


Product Description


Size: There is no minimum or maximum limit to the size of the export sale that may be financed with Export-Import Bank's loan guarantee.


Coverage: Export-Import Bank's loan guarantee covers 100% of principal and accrued interest on any amount. (We also offer a medium-term insurance policy that can support financing up to $10 million.) The total level of Export-Import Bank support will be the lesser of 85% of the value of all eligible goods and services in the U.S. supply contract or 100% of the U.S. content in all eligible goods and services in the U.S. supply contract.


Cash Payment: Export-Import Bank requires the buyer to make cash payment to the exporter equal to at least 15% of the U.S. supply contract. The 15% cash payment can either be borrowed from a lender or the exporter at market terms, or be from the buyer's own funds.


Repayment Terms: Generally, the repayment term of a transaction is determined by numerous variables including but not limited to the borrower's financial condition, the common repayment terms the market gives such products, specific industry practices, industry and country conditions, useful life, OECD and Berne Union agreements, and the matching of terms offered by other foreign government-sponsored financing.

Repayment terms up to five years are generally available for exports of capital equipment and services. Terms up to 10 years may be available for transportation equipment and exports to large-scale projects.


Medium-Term Credit Standards: To qualify for Export-Import Bank's medium-term financing, borrowers must meet certain credit standards, depending on the size of the transaction, the nature of the buyer, and the goods and services being financed. If a buyer does not meet these standards, the use of guarantors and other credit enhancements may be used to qualify. (See Medium-Term Credit Standards.)


Long-term Loan Guarantee Program for large capital items where the loans amount is over $10 million or the repayment term is 7 years or longer.

  • Loan value is generally up to 85% of the US Contract Price, plus the Export-Import Bank Exposure Fee, plus some approved ancillary fees
  • Repayment is in semi-annual or quarterly installments of equal principal and interest due Floating rate (LIBOR-Base) or Fixed rate (subject to market availability) interest options
  • Term is 7 years and up, subject to Export-Import Bank approval