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Greetings!
This month's issue of our eNews focuses on International Business and Exporting, plus the tools and services that One Source offers to help you evaluate and manage the risk associated with exporting.
Included in this issue are articles on our New International Credit Report Service, The U.S. Ex-Im Bank, and highlights of four business cases where our clients have benefitted from using international credit insurance. This month's Newsletter Spotlight features the Euler Hermes Weekly Export Risk Outlook. Lastly, we are proud to tell you about our recent industry award and participation in three world-class professional credit organizations. Don't miss reading "One Source in the News". Click on a title on the right to go directly to each article.
To those that provided feedback on our first issue - THANK YOU! Please continue to provide your suggestions, comments, and questions. Send to newsletter@onesourcerm.com. We hope you enjoy our newsletter!
Sincerely,
Monica Brown
Editor, One Source eNews |
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International Credit Reports
A New Service from One Source
Through an exclusive outsourcing partnership, One Source is pleased to now provide International Credit Reports. Our alliance of global business partners consists of leading credit agencies with an extensive international presence in 70 countries and a database of over 44 million companies. An extensive network of offices throughout the world specializes in thorough investigations of local businesses. This local presence facilitates greater cooperation with information sources and increased knowledge of the local markets and customers. This results in quality credit reports customized to answer your unique needs.
An International Credit Report will typically contain the following information on the subject company:
Identification, Executive Summary, Rating, Legal Information, Related Companies, Technical Information, History, Financial Figures, Industry Analysis, Bank References, Trade References, Payment History, Public Records, Future Operations
The information required to order a report includes the subject company's legal name, country, and phone number. For more information or to order an International Credit Report, please contact us at reportrequest@onesourcerm.com. Current and prospective One Source clients may also contact your One Source representative for assistance. | |
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The Export Import Bank of the United States
A U.S. Government Agency That Can Help You Compete Internationally | |
The Export Import Bank of the United States (U.S. Ex-Im Bank) is an agency of the U.S. government whose role is to create and sustain U.S. jobs by supporting the sales of U.S. exports to international buyers. U.S. Ex-Im Bank accomplishes this by issuing export credit insurance to U.S. exporters, loan guarantees to U.S. banks that provide financing for the exports, and direct loans to overseas purchasers of U.S. goods and services. U.S. Ex-Im Bank is headquartered in Washington, D.C., and has 8 regional offices in major cities around the U.S.
History and Mission:
U.S. Ex-Im Bank was originally incorporated in 1934 as the Export-Import Bank of Washington. Its mission was to assist in financing the export of American-made goods and services. The bank's first transaction was a $3.8 million loan to Cuba in 1935 for the purchase of U.S. silver ingots.
U.S. Ex-Im Bank's charter states that it will not compete with private sector lenders. Instead, the bank should provide export-financing products (insurance, guarantees and loans) that fill gaps in commercial trade financing. The bank assumes credit and country risks that the private sector is unable or unwilling to accept.
Programs:
U.S. Ex-Im Bank's principal programs include:
a) Export Credit Insurance (short-term or medium-term), b) Working Capital Guarantee Programs, and c) Loan Guarantee Programs. These programs are designed to support the sales of a wide range of products. They can provide risk reduction, a marketing tool, financing, and access to working capital funds.
To read more about these three programs, click here.
Want More Information?
For more information on the features and benefits of U.S. Ex-Im Bank's programs and how they may help your business compete in international markets, click here to access the One Source map to contact the One Source representative responsible for your geographic area. |
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One Source Success Stories
Credit Insurance For International Sales Growth | |
Most U.S. companies and banks are often conservative when it comes to growing sales/exposures to international buyers. The reasons for the reluctance can be multi-fold - a low comfort level with the country's credit and political risk, limited staff resources to focus on managing international credit issues, cultural and language differences, and hesitancy to "venture in to lands unknown". Included in this article are highlights of four of our clients whose international business expanded by using export credit insurance. They increased sales, improved cash flow, and reduced risk.
Client Scenario #1
Business Overview:
This century-old agribusiness company buys, sells, stores, handles, and transports grain and food ingredients worldwide.They serve customers in growing markets in food, feed, and renewable fuel by transporting and managing logistics, storing, buying, selling, and managing all associated risks.
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Before Credit Risk Insurance on Inter'l Sales |
After | |
a) There were minimal International Sales ($30-40 million) in 2001. Most of the international sales were concentrated in Mexico. |
a) By end of 2011, the client estimates $250+ million in international (worldwide) sales. | |
b) As a commodity company, the client's managed risk is affected not only by credit quality and economic stability, but also by commodity prices. In the past 5-10 years, grain prices have fluctuated considerably, putting additional financial stress on their customers. |
b) In 2009, grain prices rose significantly. With the peso's devaluation in 2008, our client had several customers that encountered major cash flow issues. One large customer defaulted on a mid-seven figure balance. The client was insured and was able to recover the loss from their credit insurance carrier. The credit insurer is still working with the buyer (who is still in business) to recover the debt. With small margins in this industry, our client would have had to sell an additional $300-600 million in product just to break even from a loss of that size. |
Cick here to read about the other three success stories. The industries are varied, and business size ranges from medium-sized to Fortune 100 businesses.
Is Export Credit Insurance Worth It to Your Company?
To find out if export credit insurance will enable you to increase export sales while minimizing risk, click here to access the One Source map to contact the representative responsible for your geographic area. Our website also provides a free Accounts / Receivables (A/R) Analysis program (click here). As a third-party, non-biased source, we will give you the true risk picture of your portfolio by grading your top accounts as well as detailing your spread of country risk. |
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How Can We Make our eNews Better?
Contact us at:
Newsletter Editor
newsletter@onesourcerm.com
One Source Risk Management and Funding
U.S. Service Center
281.240.3100 (p) 281.240.3130 (f) |
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One Source in the News | |
On March 1st, for the second consecutive year, One Source Risk Management and Funding has been awarded the Top Producing Broker for 2010 by Zurich Credit & Political Risk. In presenting the award to One Source, Todd Lynady, Zurich Senior Underwriter, stated that the award is given to Zurich's "top producing insurance brokerage partner to thank them for their collaboration, trust and support".
The ICTF (The Association of International Credit and Trade Finance Professionals) is hosting its 2nd ICTF Global Credit Professional Symposium in Chicago, IL on April 17-19, 2011. As a founding member and symposium sponsor, One Source is proud to sponsor the keynote address, co-sponsor the evening dinner cruise, as well as lead a panel discussion on "Doing Business in the BRIC Countries". For more info on the upcoming 2011 U.S. symposium, click here.
The NCCA (National Chemical Credit Association) 2011 Educational Conference was held on February 15-18, 2011 in Orlando, FL. As a Platinum Sponsor, One Source sponsored the closing reception & dinner, as well as two conference speakers - Chris Miller of J. P. Morgan ("Chemical Industry Outlook") and Dan North of Euler Hermes ("North America Economic Outlook"). Dan was ranked 4th on Bloomberg's list of the 65 top economic forecasters in 2010. For more info on the NCCA, click here.
Mike DeLuca, One Source Senior Partner, recently conducted a program at the National Association of Credit Management (NACM)'s Houston Chapter meeting. Mike spoke on the impact of the declining Euro on U.S. economics. For more info on NACM, click here.
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Another Informative Newsletter:
"Weekly Export Risk Outlook"
published by
Euler Hermes
The Weekly Export Risk Outlook (Export Outlook) is written by Euler Hermes economists throughout the world. This informative newsletter provides weekly updates on economic and geopolitical events impacting world trade conditions. Every Thursday, the Export Outlook offers an analysis of the week's hottest topics and events, trade conditions in emerging countries, and the latest significant economic and political moves. To view the March 16, 2011 issue, click here. For more info, contact Christy Barbaran @ 410-753-0652 or email her. Click here to subscribe and to view the most current and archived issues.
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