In 1989, New Jersey natives Michael and Anne Marie Reedy started Reedy Chemical Foam & Specialty Additives to provide environmentally responsible additives to the plastic industry. They understood that in order to grow sales they needed to reach the 95 percent of the global consumers that live outside the U.S.
Since Mr. Reedy’s passing in 2013, Mrs. Reedy and her children operate the company from its headquarters in Charlotte, North Carolina.
An obstacle for the company of 15 employees was that it needed to compete better against foreign competition. Many of its competitors offered open account credit terms to their buyers, while Reedy, a fairly small enterprise, was unable to and as a result would run the risk of losing clients to other exporters.
In 2002, Reedy was introduced to the Export-Import Bank of the United States (EXIM Bank) and applied for a Small Business Export Credit Insurance Policy through itsbroker at The Credit Insurance Source in New Jersey. The insurance policy allows Reedy to insure its accounts receivable up to 95 percent, while offering “open account” credit terms to international buyers. The 60-day credit terms enhanced the buyer’s cash flow, allowing them to make payments over a longer period of time.
With EXIM’s support, exports rose to 60 percent of the company’s $4 million total sales, and Reedy ultimately discovered that export credit insurance was critical to securing deals with international distributors. The company extended its reach from Mexico and Canada to seven new countries, including Norway, Malaysia, Taiwan, Vietnam, Korea, Indonesia and China. The growth of the business has not only impacted Reedy directly, it has also allowed the company to partner with a chemical compounding company to open its own extrusion line and add employees. EXIM supported $1.5 million of Reedy's exports from 2013 to 2018.