Founded in 1951 in Concord, Massachusetts, Williamson Corporation is a family-owned business manufacturer. The company sells infrared pyrometers used to measure temperatures on traditionally difficult-to-measure industrial applications such as in the steel, aluminum, petrochemical, automotive, and semiconductor industries.
When Williamson first started exporting it used international sales managers and resellers, and its exporting sales rose from 25 percent to 42 percent. However, Williamson Corporation had expected this number to be higher. The company realized the problem was twofold. First, multinational businesses preferred to work directly with Williamson rather than through a third party. Second, foreign companies preferred not to pay cash in advance as it hurt their cash flow.
Williamson went to EXIM Bank for a solution to this payment issue. Now, the company uses EXIM’s short-term export credit insurance to protect against buyer nonpayment and offer its customers open account payment terms. Not having to pay in advance eased the cash flow burden for its international buyers.
The extension of credit terms also improves customer loyalty. Credit tells the buyer that the exporter considers them trustworthy and has confidence that they will pay their bills when they are due. The buyer typically rewards the seller's vote of confidence by continuing to make purchases. The exporter also has a competitive advantage over its competitors if they are not able to offer credit terms. Naturally, a buyer would prefer to purchase on credit terms than to pay cash.
Within the first 10 months of using EXIM, sales increased more than 25 percent and added three new jobs to its workforce. The company currently exports to Europe, Canada, Mexico, the Middle East, China, India, Japan, and South Korea.