Background:
On May 16, 2016, Fornazor International of Hillsdale, New Jersey was presented with the President’s “E” award, the highest recognition for U.S. organizations that make significant contributions to expanding U.S. exports. It was almost 30 years in the making. John Fornazor, CEO, founded the company in 1987 with four employees and a rented office. The company’s commitment to quality and nurturing relationships with international buyers quickly led to opportunities to export their feed for horses, poultry, pigs, dairy and aquaculture to markets overseas.
Challenge:
Unlike many fledgling businesses, sales opportunities were not a problem for Fornazor. Managing those opportunities, however, led to “extreme growing pains” due to a lack of financing support. Fornazor needed working capital to finance the production of animal feed to meet the demand from their overseas customers. They also needed to protect the company by insuring their foreign receivables against nonpayment by international buyers. Fortunately, their commercial bank was familiar with EXIM Bank’s products that help small business exporters, and introduced Fornazor to EXIM.
Solution:
Working together, EXIM and Fornazor addressed both challenges and the company flourished. Export credit insurance provided protection from nonpayment on Fornazor’s receivables from international clients. Fornazor, EXIM Bank and the company’s commercial lender also worked together to put a working capital loan guarantee in place, enabling the company to access vital funds for growing their production of animal feed for international markets.
Today, Fornazor is still a family-owned small business that exports to over 40 countries worldwide. In the years since their start in a rented office, Fornazor has grown to be among the 70 biggest exporters in the U.S. The company has grown their revenues, increased the number of jobs and established themselves as a leader in markets worldwide. John Fornazor credits their success to their unrelenting commitment to quality, their deep understanding of their customers and their customers’ environments and cultures, and in part, to their 25 year relationship with EXIM Bank.
Learn More:
EXIM Bank representatives are ready to help you expand your business through exporting. Reach out to an EXIM Bank Regional Director for a free consultation and download the ebook, “Compete and Win Sales,” to learn how other small businesses leverage EXIM Bank products to grow revenues through international sales Compete and Win Sales.
