Matthews Company, a family-owned manufacturer in Crystal Lake, Illinois, has been building agriculture equipment for sixty years. It specializes in continuous flow grain dryers and multi-crop shredders and exports comprise 25% of total sales.
The company had the opportunity to sell a $328,504 continuous flow grain dryer to a company in Mexico (Almacenameinto De Granos Y Semillas) but the buyer needed term-financing beyond one year. EXIM's medium-term export credit insurance policy played a key role by supporting the company's sale. While protecting the Matthews Company from buyer nonpayment, the buyer also benefitted by obtaining a longer term to repay the lender for the grain dryer.
Of note, creditworthy foreign buyers prefer greater security and better cash utilization, often consider cash advances unacceptable and simply walk away from the deal. They prefer avoid getting an expensive letter of credit or paying a high down payment to purchase capital equipment or services.