“Our partnership with EXIM is a win-win situation.” - Luis Arguello Sr, Founder and CEO, DemeTech Corporation
DemeTech Corporation is a Florida-based manufacturer that produces and exports surgical sutures and blades to more than 100 countries around the world. However, DemeTech did not always sell its sutures and blades internationally. Before partnering with the Export-Import Bank of the United States (EXIM), sales were flat and overseas orders were small. DemeTech was unable to provide credit to its international clients, preventing it from procuring large orders, and the company’s clients did business with other exporters.
Faced with the hurdles of growing its business, DemeTech turned to EXIM for assistance to access business financing. EXIM introduced DemeTech to export credit insurance, a tool to insure its accounts receivable, allowing the company to secure financing from its bank. DemeTech discovered that export credit insurance was critical to securing deals with international distributors.
After insuring its foreign accounts receivable using export credit insurance, DemeTech was able to access working capital from its bank, which improved its cash flow and liquidity. This, in turn, equipped DemeTech to start offering more flexible credit terms to its international customers, allowing them to make payments over a longer period of time for DemeTech’s goods.
With EXIM certifying 99 percent of its clients, DemeTech was able to improve its ability to offer international clients credit, and secure larger orders essential for growth. Export credit insurance resulted in more customers and bigger deals.
With export credit insurance, DemeTech expanded its market line, purchased new equipment and automated many of its production methods, allowing it to compete with other international manufacturers. The automation of its production not only lowered costs but increased productivity.
DemeTech has leveraged export credit insurance to reach new markets, expand its workforce and meet international client credit requirements. Since partnering with EXIM in 2000, DemeTech Corporation has quadrupled its workforce. Expanding its ‘made in America’ business to more than 100 countries opened the door to revenue growth of over 400 percent. Today more that 80 percent of its revenue comes from international exports to buyers in the Middle East, Europe, Asia and Australia.
Learn more about how export credit insurance can assist your business to manage the risk of foreign customer nonpayment. Get the essential guide to mitigating the risk of nonpayment, the Guide to Export Credit Insurance.