Chad Remp of the Wheeling Truck Center in Wheeling, West Virginia, recently spoke with fellow small business owners about driving business growth through exporting. Read on to learn why offering open account credit terms to international customers is a key success factor for businesses of any size.
Wheeling Truck Center is a full-service Volvo dealer in new and used trucks, service, and truck parts for all makes of heavy-duty class 8 trucks. Among the many accolades the company has received is the President’s “E” Award, the highest recognition any company in the U.S. can receive for their contributions to exporting. During a recent International Trade Finance Seminar hosted by the U.S. Commercial Service in collaboration with the U.S. Small Business Administration, the West Virginia District Export Council (DEC) and the West Virginia Department of Commerce, Chad Remp of the Wheeling Truck Center, Inc., made a compelling case, advising small business owners about four reasons to offer open account credit terms to international buyers.
The customer requires it:
Think about it from the customer’s point of view. Cash in advance is great for the seller, but carries maximum risk for the buyer. Products from the company offering credit terms may be a little higher priced, but the overall deal may be more attractive to the buyer and many international buyers require credit terms as a condition of sale. Said another way, requiring cash in advance can be a great way to give your competitor the edge to win the deal.
Ease of doing business:
Fast turn-around time is crucial to many customers, and offering open account credit terms streamlines the process. With credit terms, the buyer is not subject to the delay of letters of credit or sending cash in advance. In his remarks, Mr. Remp cited his company’s ability to quickly and easily fill orders as a competitive advantage.
Customer loyalty:
Nothing breeds loyalty like trust and nothing helps a business grow like loyal, repeat customers. Unfortunately, at times companies find themselves in financial trouble and are unable to pay. That’s why the advice from the Export-Import Bank of the United States (EXIM) is trust, but insure. Export credit insurance is the EXIM product that Wheeling Truck Center and thousands of other small businesses use to insure the value of the receivables generated by international sales. Just like you insure your house or your car, export credit insurance protects your company’s financial assets.
Customers with open accounts order more:
Enough said.
EXIM supports businesses of all sizes – no company and no deal are too small. Want to learn more? Click on the link below to contact your local EXIM representative for a free consultation.
