Financing Solutions for Veteran-Owned Business Exports
EXIM provides financial tools to help U.S. veterans who have served their country grow their businesses through the export of "Made in the USA" goods and services.
The agency recognizes the sacrifices our veterans made in service to our country and our freedoms. And when that service is done, EXIM's tools and resources can help veteran-owned businesses grow by reaching new customers and markets abroad.
More than 2.4 million U.S. businesses are owned by veterans, about nine percent of all American firms and employ 5.8 million employees. (Source: Entrepreneur (link is external). EXIM has supported the success of many veteran-owned companies and, in fact, has established a team dedicated to them.
Research shows the fear of not getting paid is the top concern of U.S. companies. EXIM reduces this concern. The agency's export credit insurance covers commercial and political nonpayment risks up to 95 percent of the sales invoice. Therefore, your company can enter new international markets with confidence and increase sales in existing ones. EXIM can protect sales to a single buyer or an entire portfolio of foreign buyers.
The insurance also empowers businesses to offer competitive open account terms to foreign buyers instead of requiring them to pay cash in advance or secure letters of credit.
EXIM guarantees a lender's loan providing U.S. companies with access to the vital funds needed to fulfill their sales orders. These funds can be used to purchase finished products, raw materials, and equipment as well as cover labor and overhead costs. This credit line may also be used to cover standby letters of credit used as performance or bid bonds.
EXIM's loan guarantee gives lenders the assurance to provide loans to foreign buyers for purchasing U.S. capital goods and services.
Veteran's Company Prospers. Expands with Confidence by Extending Credit to Foreign Buyers with EXIM Support.
"Our export business at Jeco Plastic Products has shown double-digit annual growth in recent years, in part because we were able to offer open account payment terms and still eliminate the risk of nonpayment by overseas customers."
Craig Carson, CEO and Owner
Jeco Plastic Products
Jeco Plastic Products CEO Craig Carson credits EXIM with helping his business grow through exporting. Founded in 1973 and headquartered in Plainfield, Indiana, Jeco Plastic Products is an international leader in the development and production of plastic pallets.
Veteran Craig Carson bought the company nearly two decades ago. He applied the experience and leadership skills he learned in the Army and working previously for large companies to introduce technology in differentiating Jeco's products. The company has used state-of-the-art equipment to manufacture customized and durable pallets, offering real value to customers by increasing productivity.
With the domestic market shrinking, Mr. Carson knew that exporting was crucial to Jeco's growth. But as a small company, he needed to make sure it was covered from the risks of buyer nonpayment. In 1998, his company obtained an EXIM's Export Credit Insurance policy to protect Jeco's accounts receivable. Another exporting obstacle was buyer cash flow issues due to the long lead time to deliver the pallets. With revenue protection from EXIM's insurance, Jeco was able to offer open account credit terms from 60 to 90 days to its customers.
Today, nearly two-thirds of the company's sales are to international customers in Western and Eastern Europe, North and South America, Japan, and the Middle East. The company faces and often beats competition from local manufacturers and Chinese companies. Since 2014, EXIM has supported more than $4 million of Jeco Plastics international sales.
LEARN MORE: Contact EXIM's Minority- and Women-Owned Business (MWOB) Outreach Group via email at MWOB@exim.gov.