EXIM Supports Veteran-Owned Businesses
EXIM recognizes the sacrifices our veterans made in service to our country and our freedoms. And when that service is done, EXIM tools and resources can help veteran-owned businesses grow by reaching new customers and markets abroad.
More than 2.4 million U.S. businesses are owned by veterans, about nine percent of all American firms. They employ 5.8 million employees and dole out $210 billion in annual payroll. (Source: Entrepreneur). EXIM has supported the success of many veteran-owned companies and, in fact, has established a team dedicated to them.
Financing Solutions for Veteran-Owned Business Exports
When commercial lending is not an option, EXIM can empower veteran-owned businesses to grow by providing the financial tools to win sales worldwide.
Research shows the fear of not getting paid is the top concern of U.S. companies. EXIM reduces this concern. The agency’s export credit insurance covers commercial and political nonpayment risks up to 95 percent of the sales invoice. Therefore, your company can enter new international markets with confidence and increase sales in existing ones. EXIM can protect sales to a single buyer or an entire portfolio of foreign buyers.
The insurance also empowers businesses to offer competitive open account terms to foreign buyers instead of requiring them to pay cash in advance or secure letters of credit.
EXIM guarantees a lender’s loan providing U.S. companies with access to the vital funds needed to fulfill their sales orders. These funds can be used to purchase finished products, raw materials, and equipment as well as cover labor and overhead costs. This credit line may also be used to cover standby letters of credit used as performance or bid bonds.
EXIM’s loan guarantee gives lenders the assurance to provide loans to foreign buyers for purchasing U.S. capital goods and services.
Tactical Medical Solutions exports with confidence. Army veteran Ross Johnson is less stressed about foreign buyer nonpayment— and you can be, too.
“We are providing jobs for a full range of people, and EXIM is allowing us to make that happen. We were probably at 50 countries before we used EXIM, and we’re currently at 77. EXIM has allowed us to push into other markets and go into places where we would have been less comfortable doing business before or just weren’t competitive.”
— Ross Johnson, CEO of Tactical Medical Solutions
EXIM provides a portfolio of small business solutions that can empower businesses started by veterans to begin or expand their exporting sales. Those tools include export credit insurance to minimize nonpayment risk and improve cash flow, working capital guarantees to provide credit lines for producing goods and services, and term financing to support international buyers in purchasing American capital goods and services.
Army veteran Ross Johnson has used those EXIM tools to expand a business that grew from his military experience. During three tours as a Special Forces medic in Afghanistan, he learned firsthand what was needed to save lives in an emergency situation. So he developed his own tourniquets, starting with a sewing machine at his parents’ home while still on active duty.
In 2003, Johnson’s efforts led to Tactical Medical Solutions (TacMed), the Anderson, S.C., company he founded that has become a leading global developer and manufacturer of medical gear used on battlefields and in other lifesaving applications worldwide. To expand into new international markets, TacMed uses EXIM’s Export Credit Insurance, which allows the company to offer favorable payment terms to its foreign customers. According to Johnson, the result has been increased sales and additional jobs.
Today, TacMed has over 2,000 products in more than 70 countries. Its high-quality trauma response solutions for all levels of first responders, backed by accreditations from organizations including the U.S. Department of Defense and the American Red Cross.
LEARN MORE: Contact EXIM’s Minority- and Women-Owned Business (MWOB) Outreach Group via email at MWOB@exim.gov.