This article originally appeared in Export Finance Solutions, The Official Blog of the Export-Import Bank. Guest blog post by Nathaniel Hojnacki, Business Development Associate, Small Business Group.
Totaling more than $160 billion, manufactured goods are one of the United States’ largest exports. The largest supply-chain manufacturers represent a range of industries, including: agriculture, food, beverage, aerospace, automotive, construction, energy and mining.
When manufacturing capital equipment, such as agricultural machinery, it can be challenging to determine individual country requirements for your goods and ensure adequate financing for the entire production and delivery cycle.
The U.S. Commercial Service and the Export-Import Bank of the U.S. (EXIM) offer solutions to meet these challenges. The U.S. Commercial Service offers up-to-date country and industry guides—great resources for new or experienced exporters. Additionally, the Commercial Service provides personalized, low-cost export counseling, including targeted market research, and arranges appointments with prospective trade partners. EXIM complements Commercial Service’s support by ensuring that manufacturers can access the financing they require to export successfully.
The Plastics Materials and Machinery Export Guide, produced by the Commercial Service, is particularly useful for manufacturers. The guide provides an introduction to exporting manufactured plastic materials to 20 countries including Mexico, Brazil, and members of the European Union, which have been leading markets for U.S. machinery exports since 2011.
EXIM offers U.S. manufacturers financing including: export credit insurance, working capital loan guarantees, and direct loans. EXIM financing is ideal for small business manufacturers. For example, EXIM export credit insurance policies come with no minimum sale requirements, with some policies including a ‘pay-as-you-ship’ option, meaning you only pay a premium for what you ship, when you ship. When commercial banks are unwilling or unable to offer financing, EXIM provides government-backed guarantees that encourage commercial banks to lend to smaller businesses. For businesses unable to obtain financing in the private sector, Global Credit Express is a direct loan up to $500,000 designed for small businesses to access export working capital to finance their exports.
Manufacturers can find more information on the manufacturing industry, including upcoming trade shows at export.gov. Manufacturers can learn more about trade finance, and how to finance manufactured exports by downloading the essential Trade Finance Guide created by the U.S. Department of Commerce.
Editor’s Note: To learn more about exporting assistance, manufacturers can also visit http://www.nist.gov/exportech/.