Kip Johnson, President of Automated Solutions in Beaverton, Oregon, was facing a dilemma. The company built a power distribution component prototype that exceeded the customer’s expectations and resulted in an order for 40 units. The deal would be a 15 percent increase in sales. Good news for a small business, sort of. The problem? The buyer was a new customer located 8000 miles away and wanted credit terms. Fortunately, the City of Beaverton was a member of EXIM Bank’s Regional Export Promotion Program (REPP) and referred Mr. Johnson to his local EXIM Bank representative. Automated Solutions took a small business insurance policy with EXIM Bank that empowered the company to safely offer credit terms to the buyer and capture the sale. “I don’t think I would have taken the order without credit insurance from EXIM,” says Mr. Johnson. Instead, credit insurance offered the protection and peace of mind to do the deal.
DemeTech Corporation, a Florida-based manufacturer of surgical sutures and blades faced a different problem – sales were flat and overseas orders were small. “In international sales, a distributor can only grow with the financial capital they have,” says Luis Arguello. Jr., DemeTech’s Vice President, “so they rely heavily on the manufacturers to provide credit terms to grow their sales.” Working with EXIM Bank, DemeTech was able to overcome two hurdles. Export credit insurance empowered the company to close deals with international buyers. In addition, now that foreign receivables were covered to 95 percent, DemeTech’s bank added those assets to the company’s borrowing base, and DemeTech was able to secure a working capital loan that improved cash flow and provided resources to fulfill international orders. “Our partnership with EXIM is a win-win situation,” says Mr. Arguello.
Slade Inc. of Statesville, North Carolina, is a small business manufacturer of fluid-sealing products for industrial equipment. Working with EXIM Bank over the last 19 years, Slade now exports to 65 countries, up from one country in 1997. EXIM Bank’s export credit insurance is a cornerstone of Slade’s business operations, and another small company grows through exporting.
Are you answering inquiries from foreign companies that want to buy your products or services? Download the “Basic Guide To Exporting,” to learn how to grow your foreign sales: