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Providing Buyer Financing and Winning Sales
May 26, 2015 Kathy Yao, Business Development Specialist, Small Business Group

Many exporters have expressed an interest in learning how they can assist international buyers in obtaining financing to purchase their goods and or services. Exporters say that providing buyer financing can make the difference between winning sales or losing the buyer to a competitor. In this blog, we will highlight two options for export financing for international buyers.

The first program is the Medium Term Guarantee from the Export-Import Bank of the United States (EXIM). The Medium Term Guarantee protects lenders against nonpayment by a foreign buyer of U.S. made capital equipment sales and related services with payment terms between one and five years. The program guarantees term financing for foreign buyers – usually at U.S. interest rates. To qualify, the foreign buyer must be able to demonstrate they can service the debt they are taking on. EXIM supports up to 100 percent of the transaction after a 15 percent required cash down payment by the buyer. To learn more, go to EXIM - Finance Term Guarantee.

A second program is through The U.S. Department of Agriculture’s Foreign Agriculture Service (FAS), which  also offers a program for buyer financing. It is a credit guarantee on financing for foreign buyers of U.S. food products, reducing financial risk to lenders and encouraging financing of U.S. agricultural products. The benefits of the program include that buyers, especially in emerging markets, will be able to place bigger orders if financing is provided. The amount of financing is determined by the banks involved . To learn more about this program, visit www.fas.usda.gov.

If you are in the business of exporting U.S. made capital equipment and related services, or your business exports U.S. agricultural products, there might be financing available for your international buyers.

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