Are you a U.S. small business that sells architecture, construction, advanced manufacturing, engineering IT or legal services? If so, are you exporting these services to foreign entities or are you looking to expand to the international market? If you’ve answered yes to the questions above, then you’re in a growing market of U.S. service providers looking to capitalize abroad. There are many government resources and programs out there that support the growth of U.S. service exporters; however, many are unaware that these programs even exist. The Export-Import Bank of the U.S. (EXIM) happens to be one of several federal agencies that supports service exporters by providing export credit insurance and working capital loan guarantees to equip U.S. businesses to grow their international sales.
Below are four challenges a small business may face when selling abroad:
- Foreign buyers defaulting on invoices
- Losing business to competitors due to not extending credit
- Not having enough cash on hand to fulfill export sales orders
- Not vetting foreign buyers for financial good standing
EXIM Bank’s export credit insurance helps mitigate the risks above by:
- Limiting Nonpayment Risk
EXIM Bank covers nonpayment risk for many commercial and political reasons, covering up to 95 percent of the sales invoice for single or multiple foreign buyers.
- Extending Credit
Extend credit to qualified foreign buyers, making it easier to close the deal and allowing your foreign buyers to pay as time goes on.
- Providing Access to Working Capital
EXIM’s insurance enhances the quality of your firm’s balance sheet by insuring your foreign receivables, making it more likely lenders would advance a loan.
- Providing Credit Management Expertise
Obtain financial due diligence on your foreign buyers before doing business with them.
To read more information on EXIM Bank’s support for service exporters, download our Services eBook today or click below: