Posts Tagged 'Exim Bank'

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.

__________________________________________
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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How to Leverage Government Export Assistance to Expand Your Overseas Sales

If you are a U.S.A. manufacturer and wish to learn more about Exim Bank’s capabilities to help you grow your business globally, then listen up.

“Exports Live!” Seminar Series Successfully Brings Ex-Im Bank to Small Businesses

More than 1,500 attended a half-day interactive seminar series created by five federal agencies to demonstrate how local businesses can successfully leverage government export assistance to expand sales of U.S. goods and services in foreign markets and increase their bottom lines. The first seminar kicked in New York City’s Marriott Marquis hotel on Oct. 5, 2009 and was followed by similar sessions in Boston (Oct. 6), Miami (Oct. 26), Houston (Oct. 27), Chicago (Nov. 10), Los Angeles (Nov. 16), Seattle (Nov. 17), and Detroit (Dec. 11). The eight-city “Exports Live!: Real Deals, Real Profits” series reviewed strategies and partnerships used by local small and medium-size businesses that have already discovered how to increase profitability through exporting.

For all upcoming trade seminars visit:  www.exim.gov/seminars.

Women small business exporters

go here!

Posted by:  Laurel Delaney

Exim Bank Wakes Up Sleeping Giant: Women Entrepreneurs

sleepinggiantwegg

Exim Bank, known for supporting the financing of U.S. goods and services; turning export opportunities into real transactions; and, maintaining and creating more U.S. jobs (refer to their U.S. Small Business Exporters page), has just launched a unique women’s lending package which is part of its commitment to helping a sleeping giant segment grow and expand a business: women entrepreneurs.

The loans, issued to women entrepreneurs through Exim Bank`s retail banking regions and used for business start-ups, expansion, capital needs, or help with cash flow, according to the bank’s Marketing and Public Relations Manager, Christine Manyenye.

Referred to as Women Entrepreneurs Finance Program (WEF) — it has been designated to address some of the issues that impede women`s access to finance.

Exim Bank has already trained nearly 100 women in Moshi (e.g., a Tanzanian town), over 100 others in Arusha and more than 50 in Karatu. The Bank`s mission will proceed to Morogoro where they target 100 women, in Mtwara 75, Tanga 100, Mwanza, 100 and 200 in Comoro Islands by early April this year.

Exim Bank is a member of the Global Banking Alliance (GBA) for Women, a worldwide group of banks that are sharing best practices in order to accelerate the global growth and development of women`s businesses and women’s wealth creation.

Read more here.

Posted by: Laurel Delaney


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