2008 and 2020. From an economic standpoint it’s déjà vu all over again. The circumstances are different, but the impact on the economy is similar and small businesses are being hit hard. You may not think this is the right time to expand, but take a contrarian view for a minute.
In 2008, small businesses like Fritz-Pak of Mesquite, Texas, were forced to layoff employees, and the company was almost forced to sell. Instead of folding his tent and going home, Fritz-Pak President Gabriel Ojeda embraced exporting and the results were impressive. With an export credit insurance policy from EXIM, Mr. Ojeda was empowered to offer foreign buyers open account credit terms and the combination of competitive terms and “Made in the USA” products led to sales in Taiwan, China, South Africa and other international markets. An export credit insurance policy covers the accounts receivables generated by sales to foreign buyers, mitigating the risk of nonpayment and giving business owners confidence that the company’s financial assets are protected. For Fritz-Pak, revenue grew, the laid off employees were rehired and today, about 35 percent of the company’s sales come from exports.
Listen to EXIM Managing Director Sharyn Koenig answer the most frequently asked questions about growing your business through exporting, and call us to help you get started today.