Welcome to the Eximbank website. Please feel free to browse all the categories contained within it and see what services and facilities we can offer you.

PRODUCTS AND SERVICES

EXPORT CREDIT INSURANCE

What is Export Credit Insurance?

This facility provides risk protection to exporters against payment default by foreign buyers on goods and services exported on credit terms. With this protection, exporters have the confidence to venture into emerging markets, thereby expanding their export thrust. With the Eximbank credit insurance policy, exporters can obtain protection against political and commercial risks.

How Does It Work?

An approved Eximbank exporter submits the Declaration of Shipments and Duty Paid schedule along with the premium that is calculated per invoice value, weekly.

What are the Rates Offered by the Eximbank?

Premiums vary depending on the buyer’s credit worthiness, payment terms and the economic and political environment. Currently the premium rate ranges between 1.6% and 3.5%.

RAW MATERIAL FINANCING

What is Raw Material Financing?

This is a short-term loan/direct financing that the Eximbank extends to an approved company to assist in the payment of inventory, may it be raw materials, semi-finished or finished products. Once goods are received, the exporter can now prepare products for local sale or export. This facility is offered at competitive rates and is designed for trade transactions that are short-term and self-liquidated.

How Does It Work?

An approved Eximbank exporter submits a supplier’s invoice and wire transfer instructions along with a request of transfer of funds to the supplier. 100% of the invoice value is then forwarded to the supplier and after the agreed tenor is passed, the exporter repays the Eximbank 100% of the invoice inclusive of interest.

What are the Terms Related to Raw Material Financing?

The tenor is customised to the exporter’s needs and usually ranges between 30 days and 270 days.

NOTE: Raw Material facilities can be discounted in Trinidad and Tobago Dollars (TTD) or United States Dollars (USD).

Advantages of Raw Material Financing?

  • The company is offered credit terms so that it can add flexibility to its cash flow and thereby manage its business more efficiently.
  • It provides extra time for the goods to clear customs and be resold before you need to pay for the goods.
  • Suppliers are ensured payment upon request from the exporter.

FACTORING AND DISCOUNTING

What is Factoring and Discounting?

This facility provides short-term financing to exporting manufacturers, distributors and service providers. Businesses receive financing in the form of a loan between 85% - 95% of the invoice value of export sales, which must be repaid from the assigned proceeds of payments from Eximbank approved buyers.
This facility aims to bridge the gap between the settlement of production costs and export sales receipts, allowing a business to accelerate cash flow and shorten operating cycles.

How Does It Work?

An approved Eximbank exporter submits all the required documents on the facility checklist related to an approved Eximbank buyer. Following this, 85% -95% of the invoice value is forwarded to the exporter and after the agreed tenor is passed the buyer repays the Eximbank 100% of the invoice value. All Eximbank fees and related interest are extracted and the difference is refunded to the exporter

What are the Terms Related to Factoring and Discounting?

The tenor is designed to fit the relationship between the exporter and their buyers. The credit period usually ranges between 30 days and 120 days Bill of Lading (B/L) or Drawdown (DD).

What are the Different Types of Factoring and Discounting Financing?

This facility can be discounted in Trinidad and Tobago Dollars (TTD) or United States Dollars (USD)

Advantages of Factoring and Discounting Financing

  • The exporter’s working capital cycle is shortened, therefore allowing for increased production levels.
  • Exporters can convert a credit sale into a cash sale, thereby freeing up their capital for further exports.

ASSET FINANCING

What is Asset Financing?

This facility can assist manufacturers seeking to perform equipment upgrades to improve the quality of their export products or for renovation of their premises.

What are the Terms Related to Asset Financing?

The tenor is designed to the exporter’s needs and usually ranges between one to five years.

What are the Payment Terms?

Below are the usual payment terms offered to clients:
  • Moratorium on principal
  • Interest and principal monthly
  • Interest monthly principal on maturity