Founded in 1991 by Wilton Colle, Midway Labs helps spread new scientific and technological advancements in the dietary supplement industry to countless consumers around the world. The company’s products include everything from nutricosmetics, a supplement created by women for women in the pursuit of enhancing natural beauty, to a line of supplements designed for first responders and other physically-oriented individuals. Midway Labs’ reliance on exports has allowed them to become one of the largest supplement brands in the world.
Realizing the value consumers place on products made in the United States, the Midway team relocated from their original location in Brazil and began manufacturing their product domestically. Although exports are a great source of wealth for many small businesses, international sales can provide an array of threats to a company’s financial health. International distributors often expect to buy on open account credit terms. This means that buyers may take upwards of 30 to 360 days to pay for the products they receive.
While open account credit terms allow a seller to be more competitive and entice buyers to purchase more, global customers do not always pay “on time” for the products they bought. This can result in a significant loss of capital, especially for small U.S. companies. Noting these risks, Midway Labs sought a way to insure their foreign receivables fto protect against nonpayment. They found their solution in EXIM!
EXIM provides a multitude of ways for small businesses to mitigate their commercial and political risks. EXIM’s export credit insurance policies help cover foreign receivables up to 95 percent, providing protection for small companies against nonpayment on foreign transactions. Such policies can cover an exporter’s entire portfolio of international buyers, a subset of international buyers, or an individual international customer.
By using EXIM’s insurance, Midway Labs has been able to grow and expand. The company has begun using even larger manufacturing facilities in the United States. Since international sales is a crucial aspect of Midway’s success, EXIM’s insurance has provided the company with the necessary tools to prosper.