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

Small Business Initiative:

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

Short-Term Working Capital Facility

The PEFCO Short-Term Working Capital Facility is a secondary market buyer of loans financing short-term working capital loans and letters of credit that are guaranteed against nonpayment by the Export-Import Bank of the United States ("Ex-Im Bank").

Eligible Loans

PEFCO will purchase participations in loans and stand-by letters of credit that are authorized by Ex-Im Bank under a Working Capital Guarantee. PEFCO will participate in any loan structure acceptable to Ex-Im Bank.

Eligible Lenders

PEFCO will purchase loans and stand-by letters of credit from any bank, finance company, or asset-based lender experienced in structuring and financing Ex-Im Bank loans. PEFCO does not finance exporters directly.

PEFCO Purchase

PEFCO purchases the 90% guaranteed portion of each loan or letter of credit. PEFCO purchases are without recourse to the lender. The lender funds and retains the risk of the unguaranteed balance.

Purchase Document

The PEFCO purchase document is a Master Short-Term Working Capital Loan Participation Agreement that governs all purchases.

Loan Servicing

Lender retains control over loan servicing, documentation, the Ex-Im Bank guarantee and claims.

Interest & Fees

A schedule of standard interest rates and fees may be obtained from PEFCO.

Special Programs

PEFCO offers several programs to meet specific needs. (See Short-Term Initiatives in the Small Business Initiative section.)