The Export-Import Bank of the United States (EXIM) has launched an innovative new product — the Equity Express Select (EQS) export credit insurance policy, an insurance tool created specifically to help underserved companies begin or expand their export business.
This is the first product of its kind at EXIM for the underserved business community. It was developed with the Minority and Women-Owned Business Division (MWOB) to support and empower minority-, woman-, veteran-, or disability-owned small businesses as well as rural businesses.
“As part of EXIM’s ongoing commitment to advancing diversity, equity, inclusion, and accessibility at every opportunity, I am pleased to announce an innovative new product — the Equity Express Select export credit insurance policy,” said EXIM President and Chair Reta Jo Lewis. “We created this financial tool specifically with the underserved business community in mind, working in collaboration with the dedicated team in our Minority and Women Owned Business Division.”
EXIM has launched the Equity Express Select export credit insurance product for the underserved business community. You also can view the video here.
In-House Customer Service
The EQS customer service team at EXIM will guide companies through every step of the application and servicing process, from explaining policy benefits and reviewing qualifications to streamlining the application and addressing any concerns along the way. To facilitate this, EXIM has created a new online Exporter Toolkit to help companies understand and complete the process.
To qualify for EQS coverage, a company must:
- Certify or verify its MWOB qualification status as a minority-, woman-, veteran-, or disability-owned business or be located in a rural area based on zip code.
- Be a small business, as defined by the Small Business Administration (SBA).
- Have not previously utilized other EXIM insurance products.
- Have less than $10 million in annual export credit sales.
- Have less than five years of exporting on credit terms.
No Up-Front Costs
The EQS insurance will cover 95 percent of the accounts receivable generated by selling to an international buyer on open account credit terms. Additional benefits include:
- There are no up-front costs to activate the insurance product to cover export sales to more than 185 countries where EXIM is open for business. There is no deductible and no application fee.
- Premiums are paid as a company ships its products and invoices its buyers.
- EXIM will conduct the credit underwriting for potential international customers.
- With an EQS policy in place, a company can offer open account credit terms to win new customers and increase sales to existing buyers, while reducing the risk of not getting paid.
- In addition, lenders will often accept insured international invoices as collateral, expanding a company’s borrowing base and improving cash flow.
Bridging the Financial Gap
This EQS insurance policy has been designed to help businesses start or expand their exporting journey and then graduate to one of EXIM’s other export credit insurance products.
“We know that this is needed, and it bridges the gap between where they are now and where we hope that they will be,” said Tamara Maxwell, Acting Senior Vice President of EXIM’s Office of Small Business.
Two of EXIM’s advisory councils – the Council on Advancing Women in Business and the Council on Small Business – played key roles in creating this product.
“The exporting communities, that we at EXIM partner with, have been asking for a product like this for some time,” Chair Lewis said. “We are pleased to answer that call with this new export credit insurance policy, which will help level the playing field so U.S. companies that have been historically underserved can feel confident expanding to the global marketplace.”
EXIM is committed to prioritizing equity and providing resources to support U.S. small businesses. To find out how EXIM can help your business compete in the global marketplace, schedule a free consultation with a trade finance specialist and launch your export journey today.
