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My recent articles for International Business Training (IBT) discussed the exporting business benefits of utilizing the U.S. Department of Commerce's Commercial Service to go to market, expand your existing markets, and locate new markets. This is great, you say, but as a business owner or marketing/sales manager, you have to ask yourself, "What if some unforeseen circumstance goes wrong, and I do not get paid?" For a small or medium exporter, this could have the devastating effect of putting you out of business.
Perhaps you are thinking that you are either too small to bear potential risks and challenges, not big enough to self-insure, or not rich enough to pay high premiums on export payment risk management insurance.
Take heart, there is good news for you. Consider using the programs and services of the Export-Import Bank of the United States (Ex-Im Bank). The Ex-Im Bank has programs that help small businesses begin or expand their export efforts by helping manage the commercial risk factors. The Ex-Im Bank provides a service left void by commercial insurers and lenders to support small business exporters where they need it most, to be competitive and expand their international transactions.
What exactly is the Ex-Im Bank? It is an independent U.S. government agency that helps finance the overseas sales of U.S. goods and services. The Ex-Im Bank provides financing assistance for the export of U.S. goods and services to international markets to fulfill its goal to make American exporters more competitive in the global marketplace. By offering the financing and insurance that most private institutions won't, Ex-Im Bank assumes risk so you don't have to. The Ex-Im Bank programs of insurance, guarantees, and buyer financing help make selling internationally less risky. The Ex-Im Bank enables U.S. companies—large and small—to turn export opportunities into real sales that help maintain and create U.S. jobs and contribute to a stronger national economy.
Ex-Im Bank does not compete with private sector lenders but provides export financing products that fill gaps in trade financing. It assumes credit and country risks that the private sector is unable or unwilling to accept. Ex-Im Bank provides working capital guarantees (pre-export financing), export credit insurance, loan guarantees, and direct loans (buyer financing). No transaction is too large or too small. The Ex-Im Bank states that on average 85% of their transactions directly benefit U.S. small businesses implying that only 15% of transactions involve large U.S. companies. This should encourage more small exporters to apply for and use the Ex-Im Bank services and assistance programs.
With more than 70 years of experience, Ex-Im Bank has supported more than $400 billion of U.S. exports, primarily to developing markets worldwide. It also helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. Governments of many other countries have their own version of export-import banks including Australia, Brazil, Canada, China, India and Mexico. There is even a forum of nine Asian export-import banks that promotes favorable trade services and programs among its member nations.
Why would governments want to provide export-import bank services and programs to their companies? Three reasons are given in the mission and goals statements common to most export-import banks. First, they want to help their exporters be more competitive in the global arena. The second reason is the creation and sustenance of jobs through export assistance, and the third is to "level the playing field" for their respective exporters. The dominant thread: "It's all about jobs."
For example, Canada's export-import bank is called Export Development Canada (EDC) with the mission of "offering innovative financing, insurance and risk management solutions to help Canadian exporters and investors expand their international business." Another example is the China Exim Bank, the official export credit agency of the Chinese government. It was established in 1994 and is the world's largest export credit agency.
On their website, www.exim.gov, the U.S. Ex-Im Bank claims its mission is to create jobs through exports. As mentioned earlier, it provides guarantees of working capital loans for U.S. exporters, and guarantees the repayment of loans or makes loans to foreign purchasers of U.S. goods and services. The Ex-Im Bank also provides export credit insurance that protects U.S. exporters against the risks of non-payment by foreign buyers for political or commercial reasons.
Ex-Im Bank does not compete with commercial lenders, but assumes the risks they cannot accept. It must always conclude that there is reasonable assurance of repayment on every transaction financed. To qualify for Ex-Im Bank support, the exported product or service must have at least 50% U.S. content and must not affect the U.S. economy adversely.
Ex-Im Bank will guarantee financing for the export of goods or services, including commodities, as long as they are not military related. Details on the amount and structure of the guarantee percentage amount depend upon a number of factors and must be carefully worked out between the exporter and Ex-Im Bank. Two of its major goals are to increase the export of environmental goods and services in strong demand among the developing nations and to expand the number of U.S. small businesses using Ex-Im Bank programs.
The U.S. Ex-Im Bank is not a foreign aid or development agency; however, its programs often help U.S. exporters participate in development projects. Ex-Im Bank has co-financed projects with the U.S. Agency for International Development, the World Bank, and other multi-lateral development banks.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| 29230E NACHI | 150 | 215 | 39 |
| 29428EX NACHI | 140 | 280 | 85 |