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Many in the World are Breathing Better Thanks to a Small Pennsylvania Company and EXIM

Exporter/Customer: 
Circadiance
Export Destinations: 
United Kingdom, Australia, Germany, France, Canada, Japan, Switzerland, Italy, Hong Kong, New Zealand
EXIM Bank Product: 
Express Insurance
Jobs Supported: 
19

Images of breathing mask

Circadiance, a small business founded in 2008, began producing respiratory medical devices and accessories for people with sleep-disordered breathing who need non-invasive ventilation or require monitoring. The company entered the market by introducing the world’s first all-cloth respiratory interface, a soft-cloth product known as the Continuous Positive Airway Pressure (CPAP) mask.

Based in Pittsburgh, Pa., the company of only 19 quickly began to attract interest from prominent children’s hospitals and various healthcare systems seeking better alternatives to plastic masks. With a product line that includes the SleepWeaver® CPAP masks, SmartMonitor® Infant Apnea Monitors, and NeoPAP® Infant Respiratory Support Systems, Circadiance became a resource for patients in the acute care and home care markets, as well as the global marketplace. The company Began selling to buyers in the United Kingdom, Europe and the Asia Pacific.

EXPORT CHALLENGE

Although exports are a great source of wealth for many small businesses, international sales provide an array of threats to a company's financial health. International distributers often expect open account credit terms. While credit terms allow  U.S. companies to be more competitive, global customers do not always pay on time for the products they have purchased. This results in a less working capital for the U.S. -based seller.

EXIM SOLUTION

In 2013 Circadiance learned about the EXIM while working with their local U.S. export office in Pittsburgh to expand their export portfolio. They started using EXIM’s Export Credit Insurance policy to protect their accounts receivable and insure against nonpayment from international buyers.

RESULTS

As a result, Circadiance has nearly doubled its workforce and enjoyed significant growth with their CPAP mask business and the acquisition of the SmartMonitor and NeoPAP products. Now with customers in over 30 countries, Circadiance plans to continue using EXIM’s credit insurance as they grow and expand their reach to other countries in Europe, Asia and the Middle East.  EXIM has supported more than $1.1 million of Circadiance international sales over the past five years

“EXIM Bank plays an important role in our ability to confidently export higher-priced capital equipment to distributors overseas, who in turn sell our products into hospitals and home care companies. We rely extensively on EXIM in our work with foreign distributors. EXIM takes the frustration and the potential for an adversarial relationship with a buyer out of the mix, so that we can concentrate on partnerships that create added value for our resellers and end users. EXIM reduces our risk of doing business internationally and helps us to focus our efforts on creating value for our customers.”
Jim Seles, Vice President of Sales and Marketing