Omni Valve is a small company headquartered in Muskogee, Oklahoma, known as an industry leader providing valve solutions for the oil and natural gas industry. The company manufactures manually operated and automated gate valves used as safety valves for oil and natural gas production. It also sells expanding plug valves used for storage, metering and custody transfer of crude and refined forms of oil and natural gas.
Although exports are a great source of wealth for many small businesses, international sales provide an array of threats to a company's financial health. International distributers often expect to but on open-credit terms; while these can allow a seller to be more competitive, global customers do not always pay on time for the products they bought. This results in a loss of working capital for the U.S. -based seller.
The company was already exporting to ten markets before utilizing EXIM, but their business could not expand and take on the additional risk and financing challenges of adding new customers. Thus, Omni Valve, with the assistance of insurance broker NaviTrade, approached EXIM for a multi-buyer export credit insurance policy. Omni Valve utilizes EXIM’s insurance to mitigate the risk of their foreign accounts receivable. By doing so, Omni Valve was not only able to add additional foreign customers, but successfully compete for larger contracts and also exend longer repayment terms to meet the needs of their international buyers.
Since adding EXIM insurance in 2013, Omni Valve has grown from 42 employeees to 52 employees in 2019. Today, Omni Valve exports to more than 100 buyers globally and their foreign sales have dramatically increased since the EXIM policy was issued.