If you’re interested in exporting to a new market or need help finding the best overseas partners, then your first “go-to” agency will most likely be the U.S. Commercial Service. They have a program that some people think of as the Match.com of exporting – it’s called the Gold Key service/business matchmaking service. This program is a cost-recovery fee based, customized matchmaking service that helps companies find potential buyers, partners and distributors abroad.
However, many businesses are not aware that IF they have Express Insurance policies in place BEFORE meeting potential foreign buyers through the Gold Key service, they can extend credit to these buyers and be protected against non-buyer payment and other risks from the start. This can save a U.S. business thousands, if not hundreds of thousands of dollars, which is crucial to any small businesses’ bottom line. Before going to any type of international trade show or event, having insurance policies in place will allow you to:
- Obtain financial due diligence on foreign buyers/agents/distributors;
- For sales and marketing purposes: Close the deal faster when the foreign buyer requests for open account (extended) terms.
Let’s take a look at the features, eligibility and cost of each service or program:
Gold Key Service
Unlock new sales opportunities worldwide with this program from the U.S. Commercial Service program:
- In-country appointments with pre-screened potential buyers, sales representatives and business partners
- Customized market and industry briefings with Commerce Department trade experts before your business meetings
- Assistance with travel, accommodations, interpreter services and other logistics
Eligibility & Cost
- Low cost. For companies with fewer than 500 employees: $700 per country, per day (lower cost for additional days); $2,300 per country, per day for larger companies
- For new-to-export companies using this service for the first time, the fees are $350 for the first day, and $300 for each additional day of appointments.
To find a U.S. Commercial Service Trade Specialist near you, or other inquiries, call 800.USA.TRADE or visit www.export.gov.
Extend credit to new buyers and be protected against buyer non-payment and other risks from EXIM Bank:
- Extend credit up to 180 days (360 days for capital equipment) and be insured against commercial and political risks at 95 percent of the gross invoice value, with no deductible.
Eligibility & Cost
- Small Business Administration-defined small business exporters having an average of less than $7,500,000 per year, in export credit sales averaged over the most recent three-year period and with 20 or less buyers presently sold to on credit terms (excludes sales to Canada, letter of credit, cash, and sight payment transactions).
- Low cost and pay-as-you-ship. On a 60 day open account credit term to a private sector buyer, you pay $.65 per $100 of the gross invoice value. Thus, the premium for a $25,000 shipment is $162.50 (higher rates apply for longer credit terms)
Express insurance is a powerful tool for U.S. exporters. It equips businesses to enter new markets without the fear of foreign customer nonpayment, extend competitive credit terms and access more attractive financing. To get more information on this or our other financial programs, contact us at 800.565.3946, or request a consultation today.