Boeing backs SME suppliers
Boeing is the latest company to join the Export-Import Bank of the United States (US Exim’s) supply chain finance guarantee programme.
The programme provides competitively-priced working capital financing to suppliers of goods or services to US exporters.
The bank approved the Boeing programme with an initial capacity of US$740mn, of which it will guarantee up to 90%.
Citibank will serve as the lender operating the programme for Boeing’s suppliers and will cover the remaining 10% of the risk.
US Exim’s programme enables suppliers to receive early payment of their accounts receivables that are due from participating exporters, such as Boeing, in exchange for a small discount fee that is paid to the lender.
“US Exim is proud to have America's number-one exporter, Boeing, join with us in supporting the company's small-business suppliers in the use of our supply-chain financing product. Eligible companies will be able to more quickly turn their accounts receivable into cash, helping them power more sales and support more American jobs," says US Exim chairman Fred Hochberg.
Tom Dillon, Boeing corporate finance director adds: “Increasingly Boeing has called on small business to help us in sustaining export-related jobs. The supplier financing programme is a great tool to encourage this key growth area to prosper. Small business can truly join larger exporters in working together to grow much-needed jobs supported by demand for American products the world wants.”
Boeing joins Caterpillar and Case New Holland (CNH) as exporters currently participating in the supply chain programme.
US Exim will use 50% of its credit for suppliers that meet the definition of a small business, as defined by the US Small Business Administration by the end of the 12-month term.
The approved lenders must have an existing supply chain finance programme and the end products must be for export. Suppliers must also meet US Exim’s requirements for US content, the bank says in a statement.
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