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EXIM Helps Increase Arizona Company's Line of Credit

Exporter/Customer: 
Competitive Engineering Inc.
Export Destinations: 
Mexico and the Philipines
EXIM Bank Product: 
Working Capital Loan Guarantee
Export Sales: 
40 percent of total sales
Jobs Supported: 
55

CEI

Competitive Engineering Inc. (CEI) is a small business manufacturer of precision-machine components for a variety of customers, particularly in the aerospace and data-storage industries.  Based in Tucson, Arizona, CEI provides engineering and manufacturing solutions to a diverse world market.  The company is owned by Don and Charlotte Martin and has a staff of 55 employees in the United States, mostly based in Tucson.  Exports account for approximately 40-percent of CEI’s revenues. 

 EXPORT CHALLENGE

In 2005, the company turned to EXIM’s working capital loan guarantee to find a lender that would include foreign accounts receivable as collateral in its borrowing base.  EXIM’s guarantees enable U.S. exporters, mainly small and medium-sized businesses, to obtain working capital loans from qualified commercial lenders, based on inventory and foreign accounts receivable. EXIM assumes 90 percent of the loan risk with the lender covering the remaining 10 percent.

EXIM SOLUTION

To fulfill export orders and maintain cash flow, CEI currently benefits from EXIM’s working capital guarantee of a $2.5 million line of credit from its lender, GBC International Bank in City of Industry, California.  CEI uses the EXIM-guaranteed working capital to cover inventory and purchases of materials, and to maintain cash flow while awaiting payments of foreign accounts receivable.

RESULT

The funds have enabled CEI to sustain exports to major buyers in Mexico and the Philippines and to remain competitive.  Over the past five years, EXIM has helped to support nearly $50 million of CEI’s exports.  The company has been able to increase revenue and sustain and create jobs. CEI has added seven new positions in the past two years.

“Exports constitute a significant portion of our business, and we need our foreign accounts receivable to be included as collateral. EXIM’s program has given us access to the working capital we need to sustain our exports and the jobs of our hard-working employees.”
Don Martin, President