Archive for the 'Finance' Category

Jeff Deiss Talks About Winning the Trade Game with Export Finance

Jeff Deiss, Regional Export Finance Manager, Northern California | International Trade Finance Manager-Western US | US Small Business Administration – Office of International Trade | US Export Assistance Center (www.sba.gov/international) recently gave a substantial WEGGinar™ on “Winning the Trade Game with Export Finance.”  You can listen to it at your convenience here and download his presentation here.

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Note: Don’t miss our next WEGGinar™ 10/11/17 on “Navigating Global Business Travel in 2017,” and presented by Stephanie Lewin, Global Immigration Attorney at Berry Appleman & Leiden LLP (www.balglobal.com).  Register here: https://register.gotowebinar.com/register/6874264726093775875.
Event is free of charge but you must register in advance to attend.
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Xiomara Creque-Bromberg Follows Up on Her July 12 WEGGinar™

On our July 12th WEGGinar™, “How to Finance Your Exports,” we ran out of time and had a couple of remaining questions that we didn’t have a chance to address.  Below, Xiomara Creque-Bromberg, Export Finance Manager, Minority and Women Owned Business & Multiplier Outreach Division, Office of Small Business, Export-Import Bank of the United States, answers those questions.

Laurel Delaney:  On receivable insurance, please detail how a business owner arrives at their premium on an export transaction. You had mentioned during your WEGGinar™ an example of a $30,000 sale; 65¢ per $100 for insurance; and, that the premium would be $195.00. Please drill down and make it very clear on how this works and nets out, thank you.

Xiomara Creque-Bromberg:  The example used is the Express Insurance which is applicable to the most typical export credit transaction term (60 days) and for private buyer new exporters.  The Premium is calculated based on the rate applicable to the policy, having said that; let’s use one example for Mexico.

Express Insurance policy to cover a private buyer in Mexico under a 60 days open account terms.

Export Sale:                                                     $30,000.00
Premium Rate $0.65 per $100.00 of the total export value 
Export Sale                                                      $30,000.00
                                                                                .0065
Premium Payable upon shipment                          $195.00

NO SHIPMENT NO PREMIUM PAYMENT

Laurel Delaney:  Exim Bank has no minimum/no maximum dollar amount on deals. Having said that, what if I have a U.S. $5,000 transaction that I want financed, is that doable and if so, what paperwork would I complete; what would my fee be; and, what am I guaranteed? Are there any product/country restrictions that I should be aware of?

Xiomara Creque-Bromberg:  Yes that’s doable. Submit an application on Exim on Line (EOL). There is no application fee for Express Insurance. On a $5,000.00 transaction for example:

Express Insurance policy to cover a private buyer in Mexico under a 60 days open account terms.

Export Sale:                                                     $5,000.00
Premium Rate $0.65 per $100.00 of the total export value
Export Sale                                                      $5,000.00
                                                                              .0065
Premium Payable upon shipment                        $ 32.50

NO SHIPMENT NO PREMIUM PAYMENT

A one-time, refundable advance deposit of $500.00 is required before issuing the policy. On EXIM’s website www.exim.gov you will find the Country Limitation Schedule which will inform you what countries EXIM will provide support and the terms.

If the transaction is for working capital, please see the segment on pre-exporting financing below.

Laurel Delaney:  You mentioned during your talk that SME exporters are 70% more profitable than non-exporting companies. Why?

Xiomara Creque-Bromberg:  Exporting allows companies to diversify their customer base. Over 95% of the world’s consumers are outside the U. S.

Companies who are not exporting are losing buyers/customers if they are not marketing /tapping into that consumer base. Export Credit Insurance provides access to those consumers at no cost.  See www.export.gov trade.gov/cs/factsheet.asp, “Exporting Is Good For Your Bottom Line.”

Laurel Delaney:  On pre-exporting financing, funds to fulfill orders scenario, how does Exim Bank evaluate whether they will finance a deal or not?

Xiomara Creque-Bromberg:  Working Capital is evaluated based on the creditworthiness of the U.S. exporter who is in need of funds to full field an order. There is no minimum or maximum amount. You would apply for a Working Capital loan with a commercial lender that has an agreement with EXIM, to who we provide the guarantee. The lender will inform you of the required forms and fees. There are product restrictions, i.e. EXIM will not support transactions selling to a foreign country’s military; U.S. content of the product must be at least 50%. On EXIM’s website www.exim.gov you will find the Country Limitation Schedule which will inform you what countries EXIM will provide support and the terms.

Laurel Delaney:  You support service exports. How does that work? For example, if I run a design agency and provide $10,000 of work over 3 months to a customer in the UK, how would Exim Bank work with me to finance that transaction?

Xiomara Creque-Bromberg:  There are a number of different insurance policy types to protect you from buyer non-payment. Policies for services are reviewed on a case-by-case basis. However the basic requirements is that personnel providing the services must be a U.S. citizen employed by the U.S. exporter and a foreign company must be invoiced.

Laurel Delaney:  What’s the biggest stumbling block to SMEs not getting export financing?

Xiomara Creque-Bromberg:  My experience has been companies that have not been established long enough to provide a positive track record/sales history. I have also found that companies may not do a good job vetting the foreign buyer.

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Note: Don’t miss our next WEGGinar™ 9/6/17 on “How to Win the Trade Game With Export Finance,” and presented by Jeff Deiss, Regional Export Finance Manager, Northern California | International Trade Finance Manager-Western US US Small Business Administration – Office of International Trade | US Export Assistance Center (www.sba.gov/international).  Register here: https://register.gotowebinar.com/register/4753604763900421122.
Event is free of charge but you must register in advance to attend.
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Yes to India on Supporting Women-Owned Businesses

India-based Yes Bank (private sector) has received $150 million funding from the US government and Wells Fargo to increase lending to support women entrepreneurs and small and medium-sized enterprises in India.

This is the third round of funding to the bank as part of arrangement with the Overseas Private Investment Corporation (OPIC) – the US government development finance institution – and Wells Fargo.

An estimated three million women-owned businesses in India employ over eight million people. However, only about a quarter of them are able to get the finance they need to grow and create jobs.

Hopefully, this will drive future economic growth and job creation in India for women entrepreneurs.

Read more …

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Note: Don’t miss our next WEGGinar™ 8/2/17 on “How Two Savvy Moms Started a Bed Business and Took It Global,” and presented by Betsy Mikesell, CEO, and Angie White, CFO, of Beddy’s (www.beddys.com).  Register here: https://register.gotowebinar.com/register/1512287365281961985.
Event is free of charge but you must register in advance to attend.
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Female Entrepreneurs Are About to Transform the Global Economy

The World Bank (WB) unveiled a new program, the Women Entrepreneurs Finance Initiative, that is designed to boost women entrepreneurs in developing countries and fight the norms that hold them back, such as uneven access to loans and shaky property rights.  WB has raised $325 million from numerous countries, with $50 million coming from the United States and other contributions from Germany, Saudi Arabia, the United Arab Emirates, Japan, China, the United Kingdom, South Korea, and the Netherlands.

Less than a third of global businesses are owned by women, and the initiative aims to grow women-run enterprises across Africa, Latin America and the Middle East. It will also help facilitate loans to entrepreneurs, ranging in size from between a few hundred dollars to several hundred thousand dollars, depending on the applicant’s needs. World Bank officials said they hope to make the capital available later this year or in early 2018.

We cheer on the WB because it has a long history of providing support to women who are challenged by economic disadvantages.  For example, they launched the Women’s Leadership in Small and Medium Enterprises (WLSME) program, supported by the U.S. Agency for International Development (USAID).

Read more about how the WB will help women globally to reach their full potential here.

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Note: Don’t miss our next WEGGinar™ 7/12/17 on “How to Finance Your Exports,” and presented by Xiomara Creque-Bromberg, Export Finance Manager, Minority and Women Owned Business & Multiplier Outreach Division, Office of Small Business, Export-Import Bank of the United States.  Register here: https://register.gotowebinar.com/register/4467897765873413377.
Event is no charge but you must register in advance to attend.
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Lack of Capital for Women Business Owners Might Lead to Forced Creativity

Ottawa, Canada researchers Clare Beckton and Janice McDonald are eager to try to determine if factors such as a lack of access to capital make women more likely than men to devise inventive new ways of doing business out of necessity, such as taking a business global.  That could be construed as forced innovation or creativity.  It’s time to find out.

“When you are underfunded and perhaps don’t have resources, you get pretty darn creative,” she says. “It forces innovation. Given that we know that access to capital is very challenging for women entrepreneurs, has that limited access to capital shaped outcomes in terms of how they’ve approached innovation? We’re not saying that those two are necessarily linked. We’re just wondering, are they? If so, in what way?”

Read more …

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Note: Don’t miss our next WEGGinar™ 7/12/17 on “How to Finance Your Exports,” and presented by Xiomara Creque-Bromberg, Export Finance Manager, Minority and Women Owned Business & Multiplier Outreach Division, Office of Small Business, Export-Import Bank of the United States.  Register here: https://register.gotowebinar.com/register/4467897765873413377.
Event is no charge but you must register in advance to attend.

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Stubborn Wage Gap for Women Worldwide

Closing the Wage Gap For Women Worldwide

Happy 2017.  For those who missed Laurel Delaney’s webinar, “Laurel Delaney’s Global Trade Trends Report 2017,” you can access it here. And find her presentation deck here.  Now, to other important business matters.

Why is there such a stubborn wage gap for women worldwide?  Your guess is as good as ours but one thing is certain:  As a result of this trend, we’ll see more and more women starting their own businesses and taking them global at the outset.

Meanwhile, in Canada, for example, in an article in Canada’s Corporate Knights magazine, they feature a list of 100 highest paid CEOs including five people named Marc or Mark, five named Michael, four named Al, John, Paul and Steve, and three named Brian, Charles and Donald.  Where are the women?  There were just two women among those 100 corporate elites in 2015.

The United States has the same problem.  On average, American women earn less than their male peers. Highly educated women fare worst of all. For example, when the comedian Ricky Gervais joked that he was paid the same to host the Golden Globes as the actresses Tina Fey and Amy Poehler — combined — his snide humor most likely echoed throughout many workplaces.

Let’s hope in the future that the wage gap is once and for all closed for women worldwide.

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Note: Don’t miss our next WEGG webinar 2/1/17 on “How to Leverage Social Media to GROW Global,” and presented by Melisa Hinosoja, IBM Digital Marketing and Commerce Specialist.  Register here: https://attendee.gotowebinar.com/register/4285210609604750594. Event is no charge but you must register in advance to attend.

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Disruptive Funding For Global Female Entrepreneurs

disruptivefundingforwomenentrepreneurs

SheEO founder Vicki Saunders (pictured below) is out to change the world for the better and her first step is to disrupt the traditional model of funding and investment for female entrepreneurs.

“In general, women were not at the table for designing 1.0 of this world, and we better be there for 2.0,” Saunders declared, and her design for this life involves a makeover of investment to include more women-led businesses.

screen-shot-2016-09-11-at-2-22-38-pmHow does SheEO work?  First, it’s a global collaboration network creating communities of 1,000 women in locations around the world.  Second, each woman in a community contributes $1,000 to what adds up to a $1m fund.  Third, the fund is then used to finance 10 local companies that are female-led, majority female-owned and have at least $50,000 in revenue.

Read more:  How radical generosity can secure $1bn in funding for women

Screenshot courtesy:  SheEO

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Note: Don’t miss our next WEGG webinar 9/14 on “8 Critical Lessons to Ensure a Successful International Product Launch,” and presented by expert Alison Larson, founder of WorldBlazer Consulting. Register here: https://attendee.gotowebinar.com/register/4126297091592158468. Event is no charge but you must register in advance to attend.

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How to Finance Your Global Growth

HowToFinanceYourGlobalGrowth

Our WEGG Board member, Chantal Wittman, V.P. International Trade Sales, MB Financial Bank, wrote a great article on “How to Finance Your Global Growth.”  You can access it here.  One tip she shares:

“Today most U.S. export sales are made to private sector buyers in both developing and developed markets. Ex-Im Bank and private sector credit insurance policies can be used to protect the risk of non-payment from foreign buyers, while extending payment terms that can range from a few days to five years, or longer. These insurance policies can also be assigned to U.S. banks to allow for advances on foreign receivables.”

Read more:  “How to Finance Your Global Growth

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next_up_13July_2016_wegginarNote: Don’t miss our next WEGG webinar 7/13 on “China Exports: Growing Brand Recognition Locally First,” and presented by expert Nicole àBeckett, President of Mercatura Global. Register here: https://attendee.gotowebinar.com/register/1045496295028407041. Event is no charge but you must register in advance to attend.

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And one more thing!  If you are based in Chicago, don’t miss a great LIVE event on July 13th  where one of our past WEGG presenters, Louise Kern, will be discussing Saving Your #$%:  Due Diligence in International Transactions.  To find out more and to register, visit: http://calendar.itagc.org/docs/ITAGC_Calendar_8255.pdf (fee involved).  Be sure to mention WEGG when you register to get your special discount.

Screenshot courtesy:  MB Financial


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