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Import and export financing is available through the Export-Import Bank of the United States and the Small Business Administration (SBA) through their joint effort: the Export Working Capital Program (EWCP). Through EWCP, exporters are able to get credit, insurance, and other financial products. Exporters must be qualified either directly through EWCP or indirectly through intermediary lenders, in which case EWCP can guarantee the loans.
EWCP backing can be vital to obtaining import and export financing. Not all lenders are willing to extend credit to exporters, but by securing backing on these loans, a lender becomes more willing to offer the loan. An EWCP-backed loan will be repaid up to 90% in the case of default.
To qualify for financing through EWCP, a company will have to have been in business at least a year before applying for funding. It could have been in an industry other than exporting. However, in special instances where the exporter has had prior experience in the industry, this requirement may not be necessary.
The SBA is specifically designed to help small businesses obtain funding and provide assistance to them. However, the Export-Import Bank works to help exporters with import and export financing regardless of the business’s size.
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