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Hayes Manufacturing
Hayes Manufacturing’s Path to Confident Exporting
Goal (2016): Diversification across markets with a focus on international sales
• We were letting our competition have all the sales outside the U.S.
Initial Discussion and Concerns: • We know nothing about exporting, where do we start? • How can we protect our intellectual property? • How do we find reputable distributors? • How will we negotiate payment terms?• What recourse do we have for non-payment?• Who organizes the shipping and pays for the freight? • How can we maintain export compliance?
Current State 2021
• Year to date shipments to 24 countries• Export sales projection for 2021: $1 million • Exclusive distributors in India, Brazil, the United Kingdom, and China
ResourcesUS Department of Commerce
• Fact-finding
Michigan Economic Development Corporation International Trade Assistance
• Market entry strategy• Access to six international trade centers• Grants• Matchmaking Resources (vetting potential
distributors/customers)• Customized market research• Foreign company background checks• Trade show and mission assistance• Translation services• Referrals/introductions to EXIM, SBA, International Trade
Administration• Potential introductions to companies who can offer advice
and best practices
EXIM Bank• Go-to resource for best practices • Brokers have useful insights and expertise• Knowledgeable about risks by country• Accounts Receivable Insurance (confidence booster)
LR International (Hayes Freight Forwarder)• Exporting/Importing Compliance Training• Full-service logistics and consulting service provider
Van Andel Global Trade Center (Grand Valley State University)• How-to Guidebooks• In-person training (with membership)• International Job Board
Wisconsin Credit Association• International Credit Reports
Intellectual Property Attorney• Review the risks for each prospective country• Recommendations for best practices
Why You Should Export
95% of the world’s buying power resides outside the U.S.
Companies that export are 17% more profitable, worth more, and achieve more efficient operations
Exporting smooths seasonality
EXPORTING MYTHS
My domestic market is good, but I don’t need to export.1
Market stability can be temporary, global sales are necessary for long term success.
My business is too small.2
42% of small business exporters have fewer than 19 employees.
3 Exporting is too risky – what if I don’t get paid?
There are solutions that protect against nonpayment by foreign buyers.
4 Getting started is difficult.
Call us—we’ll help you get started.
WHO WE AREEXIM Bank is a U.S. federal government agency
Mission: support U.S. jobs through growth in U.S. exports
Established in 1934
Headquartered in Washington, D.C.
12 Regional Offices nationwide
Supports all U.S.-based companies who export
Sales Tool:
Be competitive by offering open account credit terms to foreign buyers
Risk Prevention:
Protect against nonpayment by foreign buyers due to commercial risks and political risks
Generate Cash Flow:
Accounts receivable from exportsales may be used as collateral to access working capital
Policies can cover a single buyer, some of your foreign buyers, or your entire export portfolio
EXPORT CREDITINSURANCE
An insurance policy covering receivables generated from export salesthat protects against nonpayment by foreign buyers
Commercial:
Insolvency
Political:
Bankruptcy
ProtractedDefault
War, revolution, insurrection
Currency transfer risk
Cancellation of import or export license
RISKS COVERED
Disputes with the buyer are not covered.
• Must have international capabilities
• L/C processing• FX services, multicurrency
accounts
PARTNERS & VENDORS
Commercial Banker
• Must have knowledge of international business
• Set up IC-DSC when export volume warrants
Accountant
Needed for International Growth:
• Set up foreign distributor dealer agreements
• Assist with practices to protect against FCPA
Attorney
• Expert in trade credit insurance
• Independent, represents multiple carriers so will grow with you
Insurance Broker
• Ensures you have control of documentation to comply with credit insurance or L/C
• Basic export compliance assistance
Freight Forwarder
• Assesses local markets for your product
• Finds potential foreign buyers for your product
Commercial Service
[email protected](312) 343-0342
Ursula WegrzynowiczBroker Account Manager
Want a Free Consultation?Enter your email address into the chat box or click here: grow.exim.gov/consultationrequest
An EXIM trade finance specialist will contact you shortly!