Some US importers are turning to tariff refund claims as loan collateral as companies wait to receive billions in payments tied to tariffs rescinded by the Donald Trump administration.
The business need to obtain funds for operations before the scheduled date has become more urgent as the US Supreme Court declared the tariffs unlawful, and $166 billion in refunds have still not been paid.
The tariffs were paid by over 330,000 importers, resulting in numerous legal disputes and refund requests. Companies used to sell their claims at a large discount to the price, but now most of them prefer to use the claims as collateral for borrowing.
Auric partner Raniero D’Aversa said lenders including banks, hedge funds and private credit firms are increasingly willing to finance these claims, allowing companies to access liquidity as well as retain ownership.
These loans typically allow interest to be accrued and repaid after a refund is issued. While this helps businesses avoid selling claims at low prices, it also exposes them to higher interest costs and uncertainty over repayment timelines.
Neil Seiden, managing director of Asset Enhancement Solutions, said the loans require larger claims that typically exceed $20 million and have a minimum borrowing requirement of $10 million.
Experts estimate that refunds could take at least two years due to appeals and administrative delays and eligibility reviews. The uncertainty of timing creates critical importance for companies that must choose between selling their claims or using them as collateral to secure loans.
If refund values ​​decline or experience further delays, financial stress will affect borrowers, while lenders will face losses as the value of their collateral will diminish.
