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Texas Company Obtains Vital Funds Via EXIM

BCH Trading Company
Export Destinations: 
EXIM Bank Product: 
Working Capital Loan Guarantee
Jobs Supported: 

BCH pine lumber.

BCH Trading Company (BCH) of Plano, Texas, is a small business that sells Southern Pine lumber and North American hardwoods. The company was formed in 1998 by a group of four experienced lumber members that were selling in export markets dating back to 1982. Founded in 1998, the company buys from many small and medium-size U.S. sawmills and then sells the products to foreign markets. Now BCH Trading Company is one of the strongest export shippers of Southern Yellow Pine Lumber.


As business boomed internationally, the company experienced a cash flow problem. It needed funds to purhcase the lumber to fulfill its sales orders.


After learning of EXIM from the Small Business Administration,  BCH obtained an EXIM's working capital loan gurantee from Wells Fargo Bank. This guarantee provides lenders with the reasurrance they seek to cover international sales. In fact, EXIM covers 90% of the loan's risk of exporter nonpayment so lenders have little to lose.


BCH has the funds to fulfill its annual sales orders of about $10 million. All its sales are export-derived with shipments to Europe, the Middle East, Japan, Taiwan, and China. EXIM's guarantee has supported $40 million of BCH’s exports fsince 2014. According to company estimates, the sales indirectly support approximately 50 combined-sawmill jobs per year.

“We would not be able to operate our business and penetrate new markets without the EXIM Bank’s working capital guarantee. We were not able to get financing through normal banking channels since our receivables are 100 percent to export customers. The Bank's guarantee has excellent advance rates of 90 percent for our export accounts receivable and 75 percent for inventory.”
Randy Barsalou, Co-Owner