Motortronics is a small business specializing in the manufacturing of solid-state AC motor controls and motor protection products. Electric motors are used in a range of products that require electricity to be converted into mechanical motion, including in consumer appliances and products used by processing industries.
Founded in 1982, the company’s headquarters is in Clearwater, Florida, with additional facilities in the British West Indies, China and South Korea. This small business has relied on EXIM since 2007, using both export credit insurance and working capital guarantees to grow its international sales.
Since it was a small company, Motortronics was concerned about buyer nonpayment. They were so concerned they did not offer open account credit terms to its buyers like its foreign competitors.
A second challenge was cash flow. The company needed funds to fulfill its sales orders as it grew.
EXIM’s Export Credit Insurance protected the Motortronics from nonpayment and also gave it the confidence to offer open account credit terms to its buyers. EXIM’s multi-buyer policy covers up to 95 percent of the sales invoice.
The company has also used under EXIM’s Working Capital Guarantee since 2007 with satisfactory experience. It currently has a $4.25 million Loan Facility with JPMorgan Chase Bank (Delegated Authority Lender).
Since 2014, EXIM has supported exports valued at more than $60 million. The company ships to buyers in more than two dozen countries, including Egypt, China, Turkey, South Korea, and Singapore, including a shipment headed for Nigeria. including with fresh-water and waste-water treatment efforts in Africa.
“With EXIM’s (insurance) support, we have been able to enter markets around the globe and win new customers in developing countries to obtain our products,” said Motortronics Vice President Joyce Mitchell.
Mitchell added, “In 2019 alone, approximately $14 – 15 million of our sales revenue was in exports. Seventy employees at Motortronics would not have jobs, if not for EXIM.” The line of credit supports approximately $20 million in export sales of electrical control equipment primarily to South Korea, Singapore, and Egypt, and 120 existing jobs at the company.