The Export-Import Bank of the United States (US Exim) has approved a US$360mn supply chain finance programme for the suppliers of truck manufacturer Navistar International Corporation.
The programme will ensure that Navistar’s small business suppliers have access to capital by receiving early payment of their accounts receivable, in exchange for a small discount fee to the lender. US Exim will provide a 90% guarantee of the invoices, while the lender bears 10% of the risk.
Navistar’s guaranteed lenders are The Bank of Nova Scotia, Canada and the Royal Bank of Scotland.
“US Exim 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 US companies competing in the global marketplace,” says AJ Cederoth, Navistar executive vice-president and chief financial officer.
“Support from US Exim helps our small-business suppliers free-up much needed capital in support of Navistar’s global growth efforts.”
Last Updated April 23, 2012
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