MBITA's finance column features articles from the experts in TRADE FINANCE for exports.
EXPORTA Comes to San Jose, California
The Chief Economist of Euler Hermes, Dan North, will be giving the keynote address at the West Coast Trade & Export Finance Conference 2013, on October 9th, 2013. He will address the economic challenges within the domestic market, such as manufacturing, monetary and fiscal policy, and evaluate the impact on US exports. The conference is the largest annual gathering of trade finance specialists on the West Coast and will as act as a key meeting point for anyone serious about undertaking business in the region.
More information and registration
OPIC Comes to San Jose, California
On November 13th in San Jose, Ca, the Overseas Private Investment Corporation (OPIC) will be conducting the workshop for U.S. small to medium sized businesses with the latest in the highly-successful Expanding Horizons 2013 series that helps businesses learn how they can compete in the global marketplace.
A central focus on this event is the opportunity to schedule and meet in 'one on one meetings' with OPIC staff and representatives from the participating U.S. government agencies who will answer questions related to your business. It includes workshop materials, breakfast and lunch.
Meridian Finance Group
The most active Ex-Im Bank Insurance Broker and 2013 Ex-Im Bank Broker of the Year
The Export-Import Bank of the U.S. has named MBITA member Meridian Finance Group its 2013 "Broker of the Year."
While most of Meridian's credit insurance and trade finance business is underwritten in the private sector, they are particularly proud of the work we do with Ex-Im Bank to support US exports. Exporting is one of the bright spots in the US economy right now and, in partnership with Ex-Im Bank, Meridian is helping hundreds of US exporters to expand their international sales.
At the "Broker of the Year" award ceremony in Washington DC, Meridian was recognized for originating and supporting more Ex-Im Bank insurance policies in the past year than any other insurance broker in the country. In addition to export credit insurance, Ex-Im Bank cited Meridian's contributions to its other programs: their support for banks using L/C insurance, their collaborations with medium-term and working capital lenders, and their generation of new loans for the Global Credit Express initiative.
Ex-Im Bank is the official export credit agency of the United States, with a mandate to provide financing, insurance, and guarantees that increase US exports. In the past year Ex-Im Bank programs have supported billions of dollars in US export sales, strengthening the US economy and creating or sustaining an estimated 250,000 jobs nationwide. Rather than costing US taxpayers money or adding to the fiscal deficit, in the past five years Ex-Im Bank has returned over $1 billion to the US Treasury.
Meridian provides access to trade finance tools that exporters can use to expand their international sales, including export credit insurance, cross-border equipment financing, foreign buyer credit lines, political risk insurance, supply chain financing, international leasing, L/C insurance, and other services. Meridian's clients include banks, non-bank lenders, multinational corporations, and—with no minimum size requirements—middle market companies and small business exporters nationwide.
Specializing in trade credit insurance, Meridian helps exporters extend competitive payment terms overseas while protecting their foreign receivables against default risks. With export credit insurance exporters can be confident of getting paid, use credit as a tool to increase international sales, and arrange financing by making their foreign receivables more attractive to lenders. Meridian brokers policies underwritten by every government agency and insurance company in the market.
This is Meridian's 20th year in business and the third time they have been awarded Ex-Im Bank "Broker of the Year." Meridian's team is multicultural and multilingual, with experience not only in trade finance and credit insurance but also exporting, importing, operations, logistics, and distribution.
For information call Meridian Finance Group at 310-260-2130, email firstname.lastname@example.org, or visit www.meridianfinance.com.
Ex-Im Bank Approves $34 Million to Finance the Export of U.S.
Solar-Related Products to Spain and South Africa
Transaction Supports White House Power Africa Initiative
Washington, D.C. - As part of its renewable-energy push, the Export-Import Bank of the United States (Ex-Im Bank) has authorized a pair of direct loans totaling $33.6 million to Abengoa of Seville, Spain, that will facilitate the export of American heat-transfer fluid produced by The Dow Chemical Company for use in solar projects in Spain and South Africa.
Ex-Im Bank's financing will support approximately 200 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.
"Ex-Im Bank's consistent support of renewable-energy projects demonstrates our commitment to supporting high-skilled jobs in an important homegrown industry and improving the environment," said Ex-Im Bank Chairman and President Fred P. Hochberg. "In addition to contributing to cleaner sources of energy and supporting U.S. jobs, these two transactions will support President Obama's goal of doubling access to power in sub-Saharan Africa."
Power Africa is a new initiative to double access to power in sub-Saharan Africa. In its initial phase, the United States has already committed more than $7 billion in financial support to this effort.
DOWTHERMTM A heat-transfer fluid from Dow is a key component of the steam-heating process in concentrated solar power plants and replaces conventional fossil-fuel boilers.
Headquartered in Midland, Mich., The Dow Chemical Company, and its consolidated subsidiaries (Dow), delivers a broad range of technology-based products and solutions through the production, marketing, and sales of specialty chemicals and advanced materials and plastics. Dow operates manufacturing sites in 36 countries and employs approximately 54,000 people.
"The Ex-Im Bank is enabling growth in the U.S. and beyond," said Carolina Barrios, market development manager for Dow Heat Transfer Fluids. "By supporting the use of high quality, U.S.-made exports, this transaction advances the competitiveness of Dow manufacturing and operations jobs locally, while helping to meet clean energy demands around the world."
Abengoa is an international company based in Seville, Spain, that applies innovative technology solutions for sustainability in the energy and environment sectors. The company operates two parabolic-trough solar plants in Logrosan, Spain, and is currently building two plants in the Northern Cape Province of South Africa with the Industrial Development Corporation. The two plants in Spain and one of the two in South Africa will rely upon DOWTHERM A.
This press release was issued on 9/19 by Ex-Im Bank. Press release source article.
Contact Lawton King (202) 565-3200.
DS-Concept Establishes New Partnership
DS-Concept Factoring, Inc., a global commercial finance company specializing in international non-recourse factoring, has provided a $3 million non-recourse international accounts receivable facility to a distributor of home goods. DS-Concept was introduced by the company's bank whose credit facility excluded foreign accounts receivable from their borrowing base.
"We're happy to have a new partnership with the company's bank while providing a solution for our client," stated Brandyn Prust, Vice President of Sales. "DS-Concept's global network allowed us to leverage our resources at the local level to efficiently support the financial and legal negotiations simultaneously in three time zones."
This press release was published by DS-Concept Factoring, Inc. on 9/11 2013.
Initiative (NEI) Update
Statement from U.S. Commerce Secretary Penny Pritzker on International Trade in Goods and Services in July 2013
On September 4th U.S. Secretary of Commerce Penny Pritzker issued the following statement today on the release of the July 2013 U.S. International Trade in Goods and Services data. U.S. exports hit the second-highest monthly level on record in July, dropping slightly to $189.4 billion, from an all-time monthly record of $190.5 billion in June. Record export levels were achieved in services and petroleum products. Exports through the first seven months of 2013 totaled $1.3 trillion, keeping the United States on track for another record-setting year.
Since President Obama launched the National Export Initiative (NEI) in 2010, an ambitious plan to sell more American goods and services into foreign markets, the United States has seen an increase of 1.3 million export-supported jobs. The NEI is the first Presidential-led, government-wide export promotion strategy. Through the initiative's focus on improving trade promotion and advocacy, reducing barriers and enforcing trade rules, U.S. exports have continued to grow.
"We have seen record U.S. exports under the National Export Initiative," said Secretary Pritzker. "While we still have more work to do, exports in July 2013 hit the second-highest monthly levels on record, and nearly 10 million Americans now have export-supported jobs. The U.S. Department of Commerce is committed to doing everything we can to help U.S. businesses continue to sell more products and services abroad and support even more jobs here at home.
U.S. Export Fact Sheet September 2013
Contact: United States Department of Commerce
Office of Public Affairs - Tel. 202-482-4883
Press release source article.
The National Export Strategy is available also at
http://trade.gov/NEI and http://export.gov.
International Trade Update at
United States Department of Commerce
Office of Public Affairs - Tel. 202-482-4883
International Trade Champions
Ayse Oge is a published author and global trade marketing expert. She is the author or the book Emerging Markets. Ayse's Corner is a periodic feature for the World TradeWinds eZine'.
The global economy is becoming increasingly interconnected due to advances of technology in communication and transportation. Most governments are eliminating trade barriers and placing value in cross-national cooperation and agreements, and consumers are also demanding foreign goods/services. Companies are currently in need for international trade professionals and "champions" who are savvy and have a thorough understanding of the dynamics of international business to thrive in this integrated economy.
True international trade champions are the ones who have both a passion for the profession and a sense of purpose extending beyond simple allegiance to employers in driving their company's trade and export sales performance. These champions must also demonstrate solid competencies and skills in global management, international marketing and sales, overseas customer support service and have a cultural awareness of product design and development to stay competitive in the global marketplace.
I have had the privilege of getting to know some of these international trade champions during the last decade and learn from their best practices. Here are some valuable takeaways from the interviews I conducted with several of them, including CEO's, Vice Presidents, and Export Managers.
- American quality standards can overcome any price advantage of foreign countries, and they represent built-in advantages for all of the U.S. exporters.
- A logistic company's role in exports is crucial. Most of them have customized services in terms of preparing documents for shipment, estimating duties and taxes, and helping with essential regulatory and information about your target country.
- The major benefit of exporting that any company acquires is name recognition, which has a cascading effect in bringing in new customers and additional local and international revenues.
- International trade professionals need an organization that has experienced associates to service the business, the production capabilities, and the proper policies and procedures to achieve the customer satisfaction before entering into foreign markets.
- Your professional networks, including government services such as Gold Key and Exim Bank, are significant in ensuring global success every step of the way.
- Shy away from giving away free samples to your clients. People value products that they pay for. Once they buy them from you, credit the total dollar amount of samples on the final invoice.
- Americans respect time and abide by deadlines when it comes to business transactions. Reminding your foreign counterparts that they need to do the same can be counter-productive in your relations. A little diplomacy and tactfulness goes a long way.
Global business champions are life-long learners and have the excitement to propel their company's expansion overseas with extraordinary marketing suaveness, extensive quality control and an innovative spirit. This is why the American economy needs to cultivate more "champions" in order to achieve economic growth and create jobs.
Ayse Oge is President of Ultimate Trade, International Trade Consulting, Speaking and Training. Ayse Oge is Regional Director of Business Education Statewide Advisory Committee in Los Angeles, CA. She is also Board Member of California Business Education Association and Program Chair of CBEA Annual Conference, November 15-17 in San Diego, CA.
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Online Export Classes
This six-course series will cover all key areas of the export industry, including markets, sales representatives, pricing, agreements, shipping and payments. You can earn Continuing Education Units (CEUs) and a Certificate in Export Management. The classes are available online 24/7, so you can start immediately and learn at your own pace.