Jeco Plastics Products, LLC, founded in 1973 in Indiana, is an internationally recognized leader in the development and production of plastic pallets. When current CEO and veteran Craig Carson bought the company nearly two decades ago, he wanted to find ways to introduce real value and technology as a way to differentiate from competitors. With these goals in mind, Craig manufactured customized and durable pallets, offering real value to customers by increasing productivity.
With an established reputation at home, customers abroad acquired interest in Jeco’s products. While the printing market continued to shrink, Craig Carson knew that exporting was crucial to his business's growth. Jeco’s initial inquiries emerged from countries like Germany and Poland where there were specific markets for its products. But as a small company, Mr. Carson needed to make sure he was covered from the risk of buyer nonpayment. The company also needed funds to fulfill new export orders.
Craig Carson and Jeco Plastics sought EXIM for financial support to expand the company's international sales. Mr. Carson worked closely with EXIM to utilize EXIM’s Export Credit Insurance, which protects U.S. exporters from nonpayment on receivables generated by international orders.
With EXIM’s multi-buyer Insurance, Jeco Plastics confident in shipping to countries such as Mexico, Germany, Poland, Czech Republic, France, Austria, and Switzerland knowing it was protected in the case of nonpayment.
EXIM has supported more than $3 million of Jeco Plastics’ exports since 2015. In addition to protection against nonpayment, EXIM's export credit insurance also provides Jeco with two other benefits to improve its international sales. With protection against nonpayment, Jeco has the confidence to offer open account credit terms to its customers. In general, buyers tend to buy more on open account as prepayment is detrimental to their cash flow.
Second, the insurance assists Jeco in improving its cash flow. The company is able to increase its borrowing capacity by assigning the EXIM-backed foreign accounts receivable to its lender.