Private Export Funding Corporation - PEFCO

DEFINITION of 'Private Export Funding Corporation - PEFCO'

A single corporation created by the U.S. Treasury and the Export-Import Bank of the U.S. that facilitates funding of exports that have not been subsidized. The PEFCO does this with the purchase of loans in the secondary market from commercial lenders. The loans are then used to finance U.S. exports.

BREAKING DOWN 'Private Export Funding Corporation - PEFCO'

The PEFCO was created to help American-made goods find their way into other countries. PEFCO loans are guaranteed by the Export-Import Bank of the United States. Some of the shareholders in PEFCO include large commercial banks that participate in financing U.S. exports, as well as industrial export companies.

RELATED TERMS
  1. Foreign Credit Insurance Association ...

    A federal agency that provides insurance for U.S. exporters. ...
  2. Export

    A function of international trade whereby goods produced in one ...
  3. Bank Letter Of Credit Policy

    An insurance policy that allows U.S. banks to confirm letters ...
  4. Trade Finance

    The financing of international trade. Trade finance includes ...
  5. Buyer's Credit

    A loan facility extended to an importer by a bank or financial ...
  6. Export Incentives

    Monetary, tax or legal incentives designed to encourage businesses ...
Related Articles
  1. Markets

    Understanding Net Exports

    Net exports are the difference between a country’s exports and imports.
  2. Markets

    Growth and Politics In Exports

    An export is a good or service that is shipped from one country to another for sale or trade.
  3. Markets

    Interesting Facts About Imports And Exports

    Imports and exports exert a profound influence on the consumer and the economy. Learn what affects these figures, and in turn how these figures affect the economy.
  4. Personal Finance

    The Reality of Commercial Real Estate Loans

    It’s corporations and partnerships that most commonly take out commercial real estate loans.
  5. Markets

    3 Reasons Why The US EXIM Bank Matters

    Ex-Im Bank supports American job creation by financing exports, it fills gaps in export financing, and it enables U.S. companies to compete against overseas firms.
  6. Managing Wealth

    Commercial Real Estate Loans

    Obtaining a commercial real estate loan is quite different from borrowing for residential real estate. Here's what to expect and how to get what you need.
  7. Personal Finance

    Agency Bonds: Limited Risk And Higher Return

    Discover these safe alternatives to Treasury bonds.
  8. Markets

    Understanding Terms of Trade

    Terms of trade measures a country’s trading efficiency.
  9. Markets

    All About Government Loans

    There are many reasons to seek a government loan rather than one from a private lender. Government loans typically have low interest rates and offer fixed or subsidized options, as well as deferred ...
  10. Markets

    China’s Stock Market Tumbles on Weak Export Data

    China's exports declined by 25.4% in February, imports also dropped by 13.8%, with trade surplus declining to $32.6 billion in February from $63.29 billion in January
RELATED FAQS
  1. Why do long-term care insurers require the loss of two Activities of Daily Living ...

    Find out why an importing or exporting merchant might turn to a banker's acceptance to help facilitate an international trade ... Read Answer >>
  2. What is a trade deficit and what effect will it have on the stock market?

    A trade deficit, which is also referred to as net exports, is an economic condition that occurs when a country is importing ... Read Answer >>
  3. What country is the world's largest exporter of goods?

    Learn about the rapid economic growth China has experienced in recent years and how the country grew into the world's largest ... Read Answer >>
  4. How do commercial banks make money?

    Learn the different ways commercial banks make money, including interest from loan products and banking fees charged to customers. Read Answer >>
  5. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  6. How are net exports influenced by the crowding out effect?

    Discover how an increase in U.S. government borrowing to finance deficits can influence the net exports of U.S. companies ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center