Ex-Im Bank guarantees the repayment of the foreign bank's obligations. The foreign bank then makes credit available to the end user of the U.S. exports and takes the repayment risk of that local company.
Financing is restricted to repayment terms of two to five years.
Exports typically sold on shorter terms are not covered under such facilities. U.S. exporters do not need to go through the Ex-Im Bank application process. They should direct their buyers to an on-lending bank in their country to obtain the credit. The U.S.-based bank will disburse to the U.S. exporter. Since the lines are preapproved and individual transactions do not require Ex-Im Bank's review, the process can move very quickly.