U.S. Quality Drug Company, Inc. in Westbury, New York, was founded in 1982 by a former employee of the Federal Drug Administration. This woman-owned, small business is dedicated to improving health for all people by exporting their vitamins, dietary supplements, and nutraceuticals worldwide. Its driving belief is that people who are well-nourished are more likely to be healthy, productive, and able to learn.
Being an export-only company, U.S. Quality Drug Company, Inc. faced many unique challenges. They needed assurances their accounts receivables would be paid. Nonpayment can be devastating for small businesses like U.S. Quality Drug Company, Inc.
To protect against nonpayment from international buyers, the company has relied on EXIM support since its inception. EXIM's Export Credit Insurance is an insurance policy that covers a company's foreign accounts receivable against commercial and political risks. It assures U.S. exporters that their business' bottom line will be protected should their foreign customers fail to pay. The insurance typically covers up to 95 percent of the sales invoice.
EXIM’s short-term export credit insurance has acted as a safety net for U.S. Quality Drug Company, Inc., giving them peace of mind when selling their products abroad. Because their accounts receivables were now insured by the faith and credit of the U.S. government, U.S. Quality Drug Co., Inc. was also able to grow its export sales by entering new international markets.
In addition to reducing the risk of nonpayment, EXIM’s Export Credit Insurance can enhance a company’s borrowing capacity. U.S. Quality Drug simply assigns its now-secured foreign receivables to a lender, improving liquidity, and easing cash flow constraints.