International Bid and Performance Bonds at Less Cost

It is of interest to small business exporters that they can reduce the collateral requirement for the international bid and performance bonds they are required to issue, by obtaining an Export Working Capital Guaranty Facility from the SBA or a Working Capital Guaranty from the Export-Import Bank of the U.S.  The collateral for these bid and performance bonds can be reduced from 100% to as little as 25%.

Both agencies provide a 90% guaranty bearing the full faith and obligation of the U.S. government.  These guaranties are fully collateralized with inventory and receivables. Inventory, including Work in Process provides an advance rate of 75% whereas qualified export receivables provide an advance rate of 90%.  The guaranties provide lenders the comfort to support a small business’s exports.

To find out more about these useful programs, please contact us.