Alaska Brands Group was formed to create business opportunities and open new markets for “Made-in-Alaska” consumer products. The company currently specializes in bottled water, tapped from the Last Frontier’s glaciers. These unique bottled waters can sell for a premium, especially in the lucrative Asian markets of Japan, South Korea, and China.
Like many American small businesses, Alaska Brands was concerned about the potential risks of selling to foreign buyers and not being paid. Since many foreign customers prefer to buy goods on credit and not prepay, many U.S. small businesses are forced to offer open account credit terms and shoulder the potential of nonpayment risk. Otherwise, the company make lose sales. Unfortunately, private sector insurance options are often unavailable to mitigate the nonpayment risks if a company’s shipments are too small or a market is deemed too risky.
That’s why Alaska Brands turned to EXIM —where no deal is too large or too small. EXIM’s Export Credit Insurance policy protected the Alaskan Brands Group against the commercial and political risks of nonpayment.
This support allowed the company to export with confidence and also extend credit terms to its buyers.