PEFCO ::: Programs -Short-Term Facilities- :::

Programs -Short-Term Facilities-

PEFCO's short-term facilities provide lenders with a dependable secondary market buyer of loans financing working capital and export receivables. PEFCO offers two short-term facilities:

Working Capital Facility: for working capital loans guaranteed under an Ex-Im Bank Working Capital Guarantee

Revolving or transaction-specific loans
Stand-by letters of credit

Short-Term Insured Loan Facility: for receivables insured under an Ex-Im Bank “documentary” or small business “enhanced” policy

Direct loans to foreign buyers (FIBC policy)
Bank letters of credit and related loans (BLC policy)
Receivables purchased from exporters (Small Business Policy)

All Short-Term Facilities have similar features.

The lender is PEFCO's client. PEFCO does not finance exporters directly.
All PEFCO purchases are without recourse to the lender.
PEFCO will purchase a participation in the guaranteed or insured portion of any loan or L/C structure acceptable to Ex-Im Bank.
The lender funds and retains the risk of the unguaranteed or uninsured portion of the loans.
The lender retains full control over collection of payments, loan documentation, debt instruments, the Ex-Im Bank guarantee or policy and the processing of claims.

Small Business Initiative: a PEFCO undertaking to support loans financing small business exporters not efficiently served under PEFCO's standard formats.