The week of September 5th 2016 Apple Computer introduced the iPhone7. The year before they sold more iPhones in China than in the U.S. and the company’s revenue was $231 billion. Yet in 1976, they were just two guys in a garage.
The Export-Import Bank of the U.S. (EXIM Bank) exists to support American jobs by facilitating the export of U.S. goods and services. In accomplishing this mission, EXIM works with companies of all sizes and of interest, small business transactions typically represent nearly 90 percent of all EXIM Bank transactions (in 2016, authorizations totaled $3 billion). The Bank does not compete with commercial lenders. We basically fill the gap when banks and financial institutions determine that a small business opportunity does not align with their strategic markets.
So how small is too small? No such thing. No company, no transaction is too small to be protected from the risk of nonpayment on foreign receivables. Exporting is proven to improve companies in many ways. For small companies, however, the risk of not being paid on products shipped overseas could have a devastating impact on the business. That’s where EXIM Bank comes in.
Express insurance from EXIM Bank is a low cost way for small businesses to protect their assets while growing revenues and profitability by exporting. It’s a “win-win” for the buyer and the seller. With Express Insurance, the U.S.-based seller can offer credit terms to foreign buyers with the confidence of knowing their receivables are covered for loss. The seller has peace of mind while the buyer gets extra time to pay the bills.
The policy has no application fees, no deductible and premiums are only paid on the items that ship each month. As an example, let’s say the holder of an EXIM Express Insurance policy offers 60-day credit terms to a new foreign buyer. The premium is 65 cents per $100 of goods sold. An order for $30,000 worth of goods sold to an international buyer is covered to 95 percent ($28,500) at a premium of $195. It’s a beautiful thing.
Express Insurance is just one of several product offerings by EXIM to empower small businesses to grow their businesses. Want to learn more? Request a free consultation from an EXIM Bank representative and unleash the potential for success!