Leveltek International LLC of Benwood, West Virginia, designs and builds specialized steel processing equipment. The company's equipment produces memory-free steel (i.e., does not go back to its original shape). The steel is required for laser and plasma cutting for customers in the fabrication, energy, agriculture and transportation industries.
In 1997 they began installing their equipment in steel production facilities worldwide. In November 2013 they became a working capital customer as needed a lender loan to grow their international sales. The $460,000 loan supported a $5.1 million contract in Australia. This project was only their third endeavor outside North America. Most of these types of international transactions require Letters of Credit to guarantee performance during the supply process. Acquiring these Letters of Credit on Leveltek's previous two projects was expensive and cumbersome for this small business.
Working with Huntington Bank, EXIM Bank's Standby Letter of Credit (SLOC) made it financially feasible for Leveltek to handle this large international sale. The SLOC guaranteed Leveltek would ship the equipment for this $5.1 million project on schedule. The equipment arrived in Australia and the SLOC was subsequently retired.
EXIM Bank's Standby Letters of Credit are typically for one year, but can extend up to three, years, and the working capital line can be used on a single transaction or revolving basis. There is no minimum or maximum transaction amount.