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Louisiana Company Grows Exports with Two EXIM Bank Products

Exporter/Customer: 
Reliable Industries, Inc.
Export Destinations: 
Mexico, Brazil, Bahamas
EXIM Bank Product: 
Export Credit Insurance and Working Capital Guarantee
Jobs Supported: 
30

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Reliable Industries Inc. of New Orleans, a small-business supplier of equipment and parts located in Harahan, La., makes 60 percent of its sales internationally with the assistance of export-credit insurance provided by the Export-Import Bank of the United States (EXIM). The company has served the mining, marine, construction and power-generation industries for the past 32 years. It supplies engines, filters, components and parts for more than 1,100 customers in 60 countries. Reliable Industries has 40 employees at its warehouse and shipping facility in Harahan, La.

Reliable's sales contain U.S.-manufactured products from 500 companies, including Donaldson, Parker Hannifin, Stanadyne and Puradyn. The company exports these companies products and other U.S.-made goods to customers across the globe, from Guatemala to Australia. It is also an active exporter to countries in sub-Saharan Africa, including Burkina Faso, Tanzania and Zambia.

EXPORT CHALLENGE

The company needed working capital to fulfill its sales orders. As it grew larger and entered more countries, Reliable Industries was concerned about buyer nonpayment.

EXIM SOLUTION

Reliable began using EXIM's products in 1985 after the CEO learned about the Bank's working capital support from a local lender and maintained an EXIM guaranteed working capital line of credit until 2011. In 2002, Reliable started with a $5 million EXIM export credit insurance policy. Later it obtained a $3 million loan from JPMorgan Chase (fast – delegated authority) with an EXIM Bank lender guarantee that reduced JPMorgan Chase's risk to only 10%. The loan supported more than $15 million in exports and 30 jobs.

RESULTS

Today, Reliable Industries uses the Bank's multibuyer insurance policy to support the company's present line of credit with a community bank. EXIM Bank's insurance can function as a financing tool because lenders are more likely to extend credit against an exporter's foreign receivables (i.e., invoices to be paid) if they are insured. Longtime broker of EXIM Bank insurance policies, J. Maxime Roy in Lafayette, La., has provided Reliable Industries with guidance and assistance in the use of the Bank's products. EXIM has supported $44.7 million of Reliable's international sales between 2013 and 2018.

"During these challenging economic times, the use of EXIM Bank products have made a tremendous difference in helping to secure new international business."
Mike Rongey, President