john a. emens, executive director – partner development cfs international capital corp april 14...

John A. Emens, Executive Director – Partner DevelopmentCFS International Capital Corp

April 14th, 2010UPS Headquarters

1616thth Annual Georgia Tech Global Business Forum Annual Georgia Tech Global Business Forum

“A yawning gap has opened in the early stages of the economic recovery between big companies and small businesses with the former enjoying access to credit and growing global markets and the latter hurting badly on both fronts.”

Wall Street Journal March 11, Wall Street Journal March 11, 20102010

..have a foreign buyer that wants credit terms …export routinely, but your growth in foreign

sales is limited because of non-payment fears …are losing export opportunities because you will

only accept an L/C or cash upfront …can’t find a lender to finance your overseas

purchase orders …are encountering cash flow problems due to

increased foreign sales …have a buyer that needs several years to pay

for capital equipment


First “Port of Call” – your existing commercial banking relationship * Your balance sheet is key to credit access * Show some profit success * Is there a limit to your banker’s “love”? Help for Your Banker – And You * Federal government programs SBA or Ex-Im Bank supported working

capital guarantee programs


Export Express * Up to $150k with guarantee of 85% * Up to $250k with guarantee of 75% * Use of proceeds: working capital,

inventory, equipment, buildings, trade show participation, translation of

literature, website design, etc. * Working capital: 7 years * Fixed assets: up to 25 years * Guaranty fee: 2-3%


Export Express Requirements/Four Questions 1) have you been in business at least 1 year? 2) are you entering a new or expanding in an existing market? 3) are you selling to an “approved” country? 4) is credit for onshore (U.S.) operations? Add: Your anticipated export sales for 1st year



> SBA Export Working Capital Guarantee Program * Up to $2 million w/ 90% guarantee for lender * Guarantee fee .25% of guaranteed amount, if

12 months or less (typical)> Ex-Im Bank Working Capital Guarantee Program * No minimum or maximum (less than $250k is unusual) – w/ 90% guarantee for lender * Guarantee fee .75% (up to 6 months); 1.5% for 7-12 months> Single transactions or revolving line of credit

Use of proceeds: * to acquire inventory for export or to be

used to manufacture goods for export * to pay the manufacturing costs of goods

for export * to purchase goods or services for export * to support standby L/Cs related to exports * for pre-shipment working capital directly

related to export orders * For post-shipment foreign a/r financing


75% against inventory and work-in-progress

85% against insured, foreign accounts receivable

90% against Letter of Credit

Advance Rates – Both Advance Rates – Both ProgramsPrograms

>Ex-Im does not have a dollar value limit>Ex-Im has over 50 lenders with delegated

authority that can immediately commit the transaction

> Ex-Im does not require the debtor to be a small business

> SBA does not have U.S. content or military restrictions

> SBA has lower fees


>Export credit insurance can convince a lender to back you

>Use your insured a/r to access credit>Insured receivables can be financed through

assignment of the policy to the lender – without losing control of your client relationship or the receivable (this is not factoring)

>Ex-Im small business insurance costs $.55/$100 of shipments, w/ premium paid the

month after shipment, no deductible>Insurance costs can be passed on to the buyer

What if your banker doesn’t work with the What if your banker doesn’t work with the Feds? Feds? Or feels that your Or feels that your requested credit is requested credit is “ “tootoo smallsmall” for their bank? ” for their bank?

Advance rates of 90% for all of your eligible insured foreign accounts receivable

Receive 90% of your invoiced amount the day after shipment

Receive the balance of invoice, less accrued interest, upon payment by your customer

Pricing – Prime +3% (Prime is currently 3.25%)

Facility fee – 1.25% Example: A $100K invoice, paid in 60 days,

would net $98,972 – w/ $90k paid right away

““Virtual” Cash Sales Virtual” Cash Sales

Generally used for buyer financing of capital equipment:

* 1 to 5 year repayment, exceptionally 7 years and < $10 million

* 15% advance payment, 85% financed amount

* Cash sale for you, term financing for your buyer, 100% U.S government guaranteed

loan for the lender

Medium-Term Capital Medium-Term Capital Equipment Financing for Your Equipment Financing for Your Foreign BuyersForeign Buyers

> SBA International Office – Atlanta Ray Gibeau, Regional Manager Export Solutions Group 404-897-6089 [email protected]> Ex-Im Bank - Southeast Regional Office Maria Gutierrez, Business Development Officer 305-526-7436 x24 [email protected]> CFS International Capital Corp – Atlanta John A. Emens, Executive Director – Partner Development 678-427-3229 [email protected]

Contact InformationContact Information

Preferred Lenders for the SBA Export Working Capital Guarantee Program doing transactions in the Southeast: BB&T Bank, SunTrust Bank, Regions Bank, Mercantile Bank, Fifth Third Bank, First American Bank and World Trade Finance. Check with Ray Gibeau, SBA, for contact information

Delegated Authority Lenders for Ex-Im Bank’s Working Capital Guarantee Program: Go to www.exim.gov/about/partners/index.cfm. The list is organized alphabetically by state.

CFS International Capital Corp – short-term working capital lines of credit ($100k-$500k+) secured by assignment of Ex-Im Bank short-term Ex-Im Bank export credit insurance policy: www.xportmanager.com

Resource AccessResource Access

john a. emens, executive director – partner development cfs international capital corp april 14...

Documents

export orders

credit terms export

export opportunities

guarantee fee

capital equipment

anticipated export sales

small business sba

revolving line of credit