SHORT-TERM INSURED LOAN FACILITY
The PEFCO Short-Term Insured Loan Facility is a secondary market buyer of loans financing short-term export receivables insured against nonpayment by the Export-Import Bank of the United States ("Ex-Im Bank").
| Eligible Loans |
PEFCO purchases participations in loans insured under short-term policies that are "documentary" or "enhanced" (i.e., policies under which the risk of supplier non-performance is eliminated).
- Financial Institution Buyer Credit policy
- Bank Letter of Credit policy
- Small Business and New-to-Export policies
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| PEFCO does not purchase participations in loans insured under non-documentary policies. |
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| Eligible Lenders |
PEFCO will purchase loans from any bank, finance company, or asset-based lender experienced in structuring and financing Ex-Im Bank loans. PEFCO does not purchase loans directly from exporters. |
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| The amount of loans purchased from a lender will depend upon PEFCO's evaluation of the lender's experience with these loans and ability to indemnify PEFCO if policy coverage is lost or a claim denied. |
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| PEFCO Purchase |
PEFCO purchases the insured portion of each loan (e.g., 90%, 95%, 98% or 100%) without recourse to the lender. The lender funds and retains the risk of the uninsured balance. |
| Purchase Document |
The PEFCO purchase document is a Master Short-Term Insured
Loan Participation Agreement that governs all purchases. |
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| PEFCO requires the personal guarantee of majority owners of non-regulated and/or privately-held lenders. |
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| Loan Servicing |
Lender retains control over loan servicing, documentation, the Ex-Im Bank policies and claims. |
| Interest & Fees |
A schedule of interest rates and fees is available from PEFCO. |
| Special Programs |
PEFCO offers several programs to meet specific needs. (See Short-Term Initiatives in the Small Business Initiative section.) |
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