1	Gaining the Competitive Edge and Financing Exports Using Ex-Im Bank November 14, 2006 Ralph Clumeck President CFS International Inc. 2600 Michelson Dr., Suite 1460 Irvine, CA 92612 Tel. 949 260-1111 • Fax 949 260-9711 www.cfsintl.com
2	About CFS International Established in 1991. 30+ years of Corporate and Trade Finance experience. Credit insurance brokerage, and trade finance advisory services. Relationship with major insurers, including Ex-Im Bank, AIG, FCIA, Coface, Euler Hermes ACI, and others. Complete suite of risk management solutions to meet exporters’ requirements. Provider of international credit reports on foreign companies through: www.internationalcreditreports.com
3	Insuring Your Exports Gaining the Competitive Edge Risk Mitigation Financing Extend more competitive terms.
4	Roles of a Broker Application Phase Help exporter with application process. Select coverage parameters to meet exporter’s objectives: Single buyer vs. multi-buyer “Small Business” status Additional Name Insured – for affiliates Services contract Enhanced Assignment Excluded Sales - unconfirmed letters of credit, top corporates, invoice size, country(ies) Review and submit application Facilitate approval process. Help exporter review quote and select the desired options.
5	Roles of a Broker Policy Phase Apply for Special Buyer Credit Limits. Order your international credit reports. Assist with policy compliance Premium reports Past due reports Transaction documents (i.e. purchase order, commercial invoice and transport documents) Loss Payee/Beneficiary Assignments Assist with policy inquiries. Liaise with Ex-Im Bank on exporter’s behalf. Claim processing.
6	Financing Your Exports Ex-Im Bank policy allows bank to provide … Attractive short-term financing using insured export receivables as collateral. Higher advance lending rate on export portfolio. Past-due receivables in borrowing base up to claim filing. More attractive financing rates
7	Financing Your Exports Bank requires… A/R insurance policy in place. Policy assignment Enhanced assignment – added risk protection to lender for exporter performance (if required). Evidence of monthly premium payments Buyer limits to cover outstanding receivables. Compliance with policy reporting requirements (i.e. past due reporting, claims, etc.)
8	Financing Your Exports We help … Introduce you to a suitable lender. Advise exporter on financing structure. Facilitate financing discussions with lender. Coordinate policy assignment to lender. Provide lender with copies of policy, endorsements, and reports.