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U.S. manufacturers often feel they have the potential to sell products outside of the United States but they lack the financing to do so. That is why they turn to CIT. Our export working capital guarantee program finances inventory and work-in-progress for U.S. manufacturers to sell abroad.
Below are the most frequently asked questions about this program. If you have additional questions or if you would like to discuss how you can put the resources of CIT to work for your company, e-mail us or call us at (800) 248-3240. We look forward to working with you.
Frequently Asked Questions
What is the export working capital guarantee program?
How can this program help my business?
What are the exporter eligibility requirements?
What is the term of the loan?
What types of loans are available?
What size loans are available?
What may I use the loan for?
Are there any restrictions?
What is the advance rate?
What collateral is eligible?
Can the export working capital guarantee program help my company?
How can I learn more?
What is the export working capital guarantee program?
This program helps small and medium-sized businesses that have exporting potential. These companies need funds to acquire inventory and finance work-in-process in order to sell U.S. goods and services to foreign customers. CIT Commercial Services has been named a Delegated Authority for the export working capital guarantee program by the Export-Import Bank of the United States.
How can this program help my business?
Lack of working capital financing is one of the biggest barriers U.S. companies face when trying to sell overseas. Despite their creditworthiness, exporters often find lenders reluctant to make working capital loans available to them. CIT is offering this program to meet your export finance needs.
What are the exporter eligibility requirements?
- Corporations, limited liability companies, partnerships, or sole proprietorships domiciled in the U.S.
- Must have one year of operating history and positive net worth
- Financial statements must show sufficient strength to accommodate the requested loan
What is the term of the loan?
- One year with renewal options
What types of loans are available?
- Transaction specific:
Loan supporting a single export transaction
- Revolving:
Loan supporting multiple exports
What size loans are available?
What may I use the loan for?
- Purchase raw materials, inventory, and finished products for export
- Payment for labor and overhead to produce goods and/or to provide services for export
- Support bid and performance standby letters of credit
Are there any restrictions?
- Export must be at least 50% U.S. content
- No military and defense items
What is the advance rate?
- Up to 90% against foreign accounts receivable
- Up to 75% against exportable inventory
What collateral is eligible?
- Export-related inventory
- Export-related accounts receivable
- Other assets
Can the export working capital guarantee program help your company? Take this test!
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