[Michael Slabitcher]

WOW! I was about to post the same thing. Wonder if we're discussing the same thing.

Newly formed corporation, Aluminum can distributor out of Delaware, who buys from China, is seeking a bank to factor purchase order deals from a Central American business buying it for resale in the country. Net 60 terms. $5MM in contract business per month. contract is for 3 years. Seeking $30MM-$40MM facility. Major brands on the cans.

Curious to see responses.

SBA Export Working Capital Program

Companies that strategically use exporting to fuel
sustainable revenue growth will quickly discover
that over time, exports sales will result in a large
pool of both inventory and accounts receivable that
need to be financed to prevent shortfalls in cash
flow. The Export Working Capital Program is used
to finance these pools of export assets.
Using SBA export loan guarantees, companies can
work with their lender to arrange an asset-based
line of credit or loan.

Benefit to Export Working Capital Guarantee Lenders

• 90% guarantee
• Funds single transactions OR multiple export
orders on inventory and receivables (up to
$5,000,000)
• Maximum advance rates:
- Up to 90% on foreign A/R
- 75% on export-related inventory
- 75% on export-related work-in-process
• Can advance against purchase orders up to
100% of borrower’s cost to fulfill orders

BORROW AGAINST
EXPORT-RELATED ASSETS (EXIM Bank)

Borrowing against inventory and accounts receivable allows U.S. businesses to turn assets into much-needed cash flow. U.S. exporters face special challenges when it comes to securing asset-based loans. Private lenders can be hesitant to lend against export-related assets, creating cash flow problems for exporters.

EXIM offers two types of support that enable businesses to borrow against their export-related assets and access cash flow to grow their sales worldwide:

Export Credit Insurance - An insurance policy for exporters' foreign accounts receivable, providing protection against the risk of buyer nonpayment.

Working Capital Loan Guarantee - EXIM can work with private lenders to help unlock the vital funds needed to capture international sales.

SELL TO FOREIGN CUSTOMERS
ON CREDIT TERMS (EXIM Bank)

Businesses that insure their accounts receivable make certain that, should a foreign buyer not pay, they will be reimbursed 85-95 percent of their invoice amount. As a result, businesses can confidently expand into new markets without fear of foreign buyer nonpayment.

Meanwhile, with their accounts receivable insured, U.S. businesses can leverage additional benefits of export credit insurance, including the ability to offer more flexible open account credit terms or access unrealized working capital from lenders. With working capital and insured foreign receivables, businesses can access a more consistent cash flow, allowing them to focus on what matters most: producing quality products and pursuing new sales.

Steven,

I'm not an expert but I believe the time in business and the time of the relationship with the client in Central America might be a hurdle for the programs listed above.

If you like, send me an email and I can introduce you to my contacts for the above programs so you may inquire directly.