Export-Import Bank Issues over 200 Express Insurance Policies in First Year
March 12, 2012
(Ex-Im Bank)
Small Businesses across the Country Benefit from Streamlined Application for
Short-Term Export Credit Insurance
WASHINGTON, D.C. --- When Martin Weinberg, President of Xamax Industries of
Seymour, Connecticut, was encouraged by his accounting firm to look to the
Export-Import Bank of the United States (Ex-Im Bank) for export financing, he
was skeptical - “We wanted to go a month or two to see if Ex-Im Bank was for
real,” stated Weinberg. “Now I know that Ex-Im Bank products are a no-brainer.
What Ex-Im Bank charges for insurance and what the policy actually meant for my
company, it wasn’t a hard sell for me.”
Xamax Industries is the 200th small business to be approved for an Ex-Im Bank
Express Insurance policy. The company is a manufacturer of raw materials
including rolled goods such as paper, plastic, and nonwoven fabrics. The
materials are sold to manufacturers abroad where the final product is assembled.
According to Weinberg, Xamax will expand its workforce as business grows
overseas.
After attending a Global Access for Small Business forum in New Haven, Conn.,
Weinberg was convinced. He learned that with Ex-Im Bank insurance, his company
could increase foreign sales overseas without elevating the risk. The $1 million
policy was brokered by Export Risk Management of Salisbury, Conn.
With export markets worldwide, Xamax is now willing to pursue additional buyers.
“We can extend better terms to our customers,” commented Weinberg. “For example,
we now have a positive balance in China – in other words, we sell more in China
than we purchase, which is basically unheard of.”
“Our efforts to encourage more small businesses to export are paying off through
the use of Bank products like Express Insurance,” said Fred P. Hochberg,
chairman and president of Ex-Im Bank. “With the exporting success of companies
like Xamax Industries, I am optimistic that our products are effective solutions
for small business exporters seeking financing for themselves and their foreign
buyers.” Express insurance was launched in April, 2011 and has soared in the
past year as a reliable tool for small business. Express insurance streamlines
the process of acquiring short-term insurance. Small businesses are able expand
into new foreign markets, add new buyers, and transfer foreign buyer credit
decision making to Ex-Im Bank at an economical cost. The online application
provides a policy quote and two foreign buyer credit decisions up to $300,000
within five workdays. More information on how to apply for the policy is
available on the Ex-Im Bank website.
In fiscal year 2011, small business financing rose over 70 percent from $3.3
billion in FY 2008 to $6 billion in FY 2011. As part of its efforts to increase
this portfolio, Ex-Im Bank's Global Access for Small Business initiative has
held more than 30 forums across the country since its launch last year.
Recently, while in Seattle with Chairman Hochberg, President Obama announced two
new Ex-Im Bank products, Global Credit Express (GCE) and the Supply-Chain
Finance Guarantee program for Boeing small business suppliers. Through GCE,
small business exporters may be eligible for a revolving line of credit, up to
$500,000 for 6 to 12 months. The product is specially designed to finance the
business of exporting rather than specific export transactions. During its pilot
phase, GCE will be offered by a select number of lenders nationwide.
The Supply-Chain Finance Guarantee program provides competitively priced working
capital financing to suppliers of goods or services to U.S. exporters. The
program enables suppliers to receive early payment of their accounts receivable
that are due from participating exporters in exchange for a small discount fee
that is paid to the lender. Ex-Im Bank provides a 90 percent guarantee of the
invoices while the lender bears 10 percent of the risk.
Under the Ex-Im program, approved lenders must have an existing supply-chain
finance program. Ex-Im Bank has set a target that at least 50 percent of the
credit be extended to suppliers that meet the definition of a small business as
defined by the U.S. Small Business Administration by the end of the 12-month
term. The end products must be for export and must meet Ex-Im Bank's
requirements for U.S. content.
Small business exporters interested in additional information on GCE and other
Ex-Im Bank products may contact the Bank by calling toll-free to 1-800-565-EXIM
(3946) and selecting option 2.
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