Money for
Indirect Exporters
World Trade Club
Ex-Im Bank – Jobs Through Exports
 The official Export Credit Agency (ECA) the United
States Government
 Self-sustaining & independent
 Established in 1934
 Headquarters in D.C.
 Twelve regional offices
Ex-Im Bank supports the sales of U. S. – made
goods and services to create and maintain
American jobs
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Exports Matter:
The World Wants What America Makes
 The United States set another annual record for the
fourth consecutive year by exporting $2.3 trillion in
goods and services in 2013.
 The data also reveals that U.S. exports supported
nearly 10 million American jobs in 2013.
 Exports of goods and services have been growing at
an annualized rate of 9.5 percent when compared to
2009.
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Exports Matter:
The World Wants What Washington Makes
 A total of 12,677 companies exported from
Washington locations in 2011. Of those, 11,451 (90.3
percent) were small and medium-sized enterprises
with fewer than 500 employees.
 Small and medium-sized firms generated over onequarter (26.1 percent) of Washington's total exports
of merchandise in 2011.
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Exports Matter:
The World Wants What Washington Makes
 Washington's export shipments of merchandise in
2013 totaled $81.9 billion.
 The state's largest market was China. Washington
posted merchandise exports of $16.7 billion to China
in 2013 representing 20.4 percent of the state’s total
merchandise exports. China was followed by Canada
($8.9 billion), Japan ($7.0 billion), the United Arab
Emirates ($4.0 billion), and Mexico ($3.2 billion).
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Exports Matter:
The World Wants What Washington Makes
 Washington's export shipments of merchandise in
2013 totaled $81.9 billion.
 The state's largest merchandise export category is
Transportation Equipment, which accounted for
$44.6 billion of Washington's total merchandise
exports in 2013. Other top merchandise exports are
Agricultural Products ($10.3 billion), Petroleum &
Coal Products ($4.7 billion), Computer & Electronic
products ($3.7 billion), and Food & Kindred Products
($3.5 billion).
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Indirect Exporting Definition
 Indirect Exporting
o A third party assumes responsibility for finding
overseas buyers, shipping products, and getting
paid.
U.S.
Supplier
U.S.
Exporter
Foreign
Importer
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Direct Exporting Definition
 Direct Exporting
o The U.S. producer deals directly with a foreign
buyer.
U.S.
Exporter
Foreign
Importer
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Factors to Determine Whether
to Export Indirectly or Directly
 The size of your firm
 Tolerance for risk
 Resources available to develop the market
 The nature of your products or services
 Previous export experience and expertise
 Business conditions in the selected overseas markets
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Approaches to Exporting
 Passively filling orders from Domestic Buyers, who
then export the product.
 Seeking out Domestic Buyers who represent Foreign
End-Users or Customers.
 Exporting Indirectly through Intermediaries.
 Exporting Directly.
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Indirect Exporting Advantages
 Indirect Exporting
o Provides a way to enter foreign markets without the
potential complexities of direct exporting.
o Provides a way to enter foreign markets without the
potential risks of direct exporting.
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Direct Exporting Advantages
 Direct Exporting
o More control over the export process
o Potentially higher profits
o Closer relationship to the overseas buyer and
marketplace
o Opportunity to learn what you can do to boost
overall competitiveness
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Types of Export Intermediary Firms
Piggyback
Marketing
Export
Agents,
Merchants,
or
Remarketers
Export
Trading
Companies
U.S.
Supplier
Confirming
Houses or
Buying
Agents
Export
Management
Companies
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Types of Export Intermediary Firms
 Confirming Houses or Buying Agents
o Represent foreign firms that want to purchase your
products.
o Seek to obtain the desired items at the lowest
possible price and are paid a commission by their
foreign clients.
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Types of Export Intermediary Firms
 Export Management Companies
o Act as the Export Department for producers of goods
and services.
o Solicits and transacts business in the names of the
producers it represents or in its own name for a
commission, salary, or retainer plus commission.
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Types of Export Intermediary Firms
 Export Trading Companies
o Can either act as the Export Department for
producers or take title to the product.
o Can be a group organized and operated by producers.
o Can be organized along multiple- or single-industry
lines
o Can also represent producers of competing products.
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Types of Export Intermediary Firms
 Export Agents, Merchants, or Remarketers
o Purchase products directly from the manufacturer,
packing and labeling the products according to their
own specifications.
o Sell these products overseas through their contacts in
their own names and assume all risks.
.
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Types of Export Intermediary Firms
 Piggyback Marketing
o An arrangement in which one manufacturer or
service firm distributes a second firm’s product or
service.
o The most common piggybacking situation occurs
when a U.S. company has a contract with an overseas
buyer to provide a wide range of products or services.
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International Payment Methods
Suppliers want to receive payment as soon as possible, preferably as
soon as an order is placed or before the goods are sent by the Exporter to the
Importer.
Exporters want to receive the goods as soon as possible but to delay
payment as long as possible, preferably until after the goods are resold to the
Importer to generate enough income to pay the Supplier.
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Ex-Im Bank – Product Support
Pre-Export
Financing
Post-Export
Financing
•
Global Credit
Express
•
Export Credit
Insurance
•
Working Capital
Guarantees
•
Loan
Guarantees
•
Direct Loans
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Ex-Im Bank Measures
to Increase Liquidity & Flexibility
 Indirect Exports. Up to 100% of the items supported in
a Working Capital Loan Facility may be Indirect
Exports
 Previously, no more than 10% of the maximum amount
could be based on inventory and accounts receivable
derived from Indirect Exports without prior consent
 A guaranteed lender must keep certain records stated
under the definition “Export Order” in the WC MGA,
which link the Indirect Export to a product ultimately
exported
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Global Credit Express
 Global Credit Express is a Direct Lending program for
Exporters to provide them with a 6-month or 12-month
revolving line of credit of up to $500,000.
 The actual line of credit amount is based on eligible
export orders, proof of past export transactions and a
ratio of net current assets.
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Global Credit Express
 Global Credit Express adds liquidity
to the U.S. small business export
market by financing the business of
exporting rather than specific export
transactions.
 Global Credit Express provides an
alternative way to build customer
relationships and accommodate
export financing needs when a
company is not yet ready for a
conventional working capital loan
guaranteed by either SBA or Ex-Im
Bank.
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Export Working Capital
Export Working Capital Loan Guarantee
Ex-Im Bank provides a
90% guarantee to Lender
to support financing to
U.S. Exporters
Lender can advance up to
75% against Export
Inventory and up to 90%
against Foreign Accounts
Receivable
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Maximizing Exporter’s Borrowing Base with
Ex-Im Bank Working Capital Guarantee
Borrow up to $1.65
million against your
collateral of $2 million
Leverage Your Export Inventory
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Maximizing Exporter’s Borrowing Base with
Ex-Im Bank Working Capital Guarantee
Borrow up to $1.65
million against your
collateral of $2 million
Leverage Your Export Receivables
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Export-Import Bank of the United States
John Brislin
Director
Seattle Regional Office
Export-Import Bank of the
United States (Ex-Im Bank)
2001 6th Avenue, Suite 2600
The Westin Building
Seattle, WA 98121
Tel: (206)-728-2264
Cell: (206)-307-5289
Email: John.Brislin@exim.gov
Website: www.exim.gov
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U.S. Small Business Administration
Sandra Edwards
Regional Manager
Export Solutions Group
U.S. Small Business Administration
Office of International Trade
U.S. Export Assistance Center
2001 6th Avenue, Suite 2610
Seattle, WA 98121
Tel: (206)-553-5615 Ext. 228
E-mail: Sandra.Edwards@sba.gov
Website: www.sba.gov/oit
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