Not every export success comes from a billion-dollar project. Some grow deal by deal, driven by steady access to working capital.
In 2023, a New Jersey-based food exporter began using EXIM Bank’s Working Capital Guarantee (WCG) to support its international operations. The initial facility was set at $13.5 million. Since then, it has expanded to more than $20 million, with each authorization supported through EXIM’s short-term guarantee program.
This is one underwriter’s (mine) perspective on how the structure worked, why it mattered, and what other exporters can take from it.
What the Data Shows
Over the past three years, EXIM has approved multiple working capital facilities for this exporter. The most recent approval, now standing at $20.7 million, marks a significant increase from where the relationship began just two years ago.
Each facility was issued through EXIM’s Delegated Authority program, which allows qualified lenders to process working capital guarantees without requiring full board-level review. That speed and flexibility matter in sectors like food and perishables, where orders move fast and working capital cycles are tight.
What the Working Capital Guarantee Does
The WCG helps exporters secure financing when traditional credit structures fall short. EXIM provides a guarantee covering up to 90 percent of a lender’s risk. This support allows exporters to:
- Reduce collateral requirements
- Expand their borrowing base
- Use export-related inventory and foreign receivables as loan collateral
- Accept larger or faster-turning orders with greater confidence
Importantly, EXIM does not provide the funds directly. The guarantee gives lenders the confidence to extend more favorable credit terms to exporters, especially in situations where private receivables might otherwise be ineligible.
What Exporters Can Take Away
This example is not about one company. It reflects a broader opportunity for U.S. exporters in working capital–intensive sectors to scale with the right kind of financial support.
A few key takeaways:
- The Working Capital Guarantee is scalable, growing alongside your export volume
- You do not need a long-term infrastructure deal to benefit from EXIM programs
- The Delegated Authority process makes funding quicker and more responsive to business needs
- Export receivables and inventory can become usable collateral, even in higher-risk markets
Final Thought
For exporters dealing with growing demand and limited cash flow, EXIM’s working capital programs offer a practical path forward. When structured properly, they allow companies to turn their export pipeline into usable credit.
If you’re exploring ways to finance larger orders or manage risk in your global sales, this may be worth a closer look.
Always open to a conversation. No pitch—just insights from the field.