Ex-Im Bank Approves $360 Million for Export Financing Benefiting Small Business Suppliers of Navistar Intl. Corp
April 20, 2012
(Ex-Im Bank)
The Export-Import Bank of the United States (Ex-Im Bank) today announced that
the board of directors has approved $360 million in supply chain financing to
benefit suppliers – many of them small businesses – of Navistar International
Corporation (Navistar). Navistar is a manufacturer and marketer of medium and
heavy trucks and mid-range diesel engines and is headquartered in Lisle,
Illinois.
"Ex-Im Bank's supply chain financing benefits Navistar's small business
suppliers by ensuring that they are paid more quickly," said Fred P. Hochberg,
the chairman and president of Ex-Im Bank. "This product improves supplier
liquidity and helps create and sustain American jobs in the process."
"The Ex-Im Bank is an important tool that provides support for small businesses
and exporters to capture business in new emerging markets and create American
jobs, while also creating a level playing field for U.S. companies competing in
the global marketplace," said A.J. Cederoth, Navistar executive vice president
and chief financial officer. "Support from Ex-Im Bank helps our small-business
suppliers free-up much needed capital in support of Navistar's global growth
efforts."
Ex-Im Bank's supply chain finance guarantee program enables Navistar's suppliers
to receive early payment of their accounts receivable that are due from the
company in exchange for a small discount fee that is paid to the lender. Ex-Im
Bank provides a 90 percent guarantee of the invoices while the lender bears 10
percent of the risk.
Under the Ex-Im program, approved lenders must have an existing supply chain
finance program. Ex-Im Bank has set a target that at least 50 percent of the
credit, by the end of the 12-month term, is extended to suppliers that meet the
definition of a small business as defined by the U.S. Small Business
Administration. The end products must be exportable and must meet Ex-Im Bank's
requirements for U.S. content.
Ex-Im's supply chain finance guarantee product is designed to provide suppliers,
particularly small businesses, with access to capital faster by allowing them to
receive early payment, typically within days.
Navistar's guaranteed lenders are The Bank of Nova Scotia, located in Toronto,
Canada and the Royal Bank of Scotland, located in Stamford, Connecticut.
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