Exporting is a risky industry, and the potential losses are far more serious for small businesses. The Ex-Im Bank exists to assist American export companies, and its services are invaluable to small businesses. The Ex-Im Bank is the federal government’s official export credit agency. However, it is also an independent agency focused solely on exports.
The Ex-Im Bank Drives American Business
The Ex-Im Bank is dedicated to protecting American interests in the global marketplace and helping U.S. export businesses expand. Some of the ways in which the Ex-Im Bank helps drive the American economy include:
- The United States only represents 5% of the global trade market, so capitalizing on the open world market is a great boost to American businesses. The Ex-Im Bank encourages business with developing economies and incentivizes US enterprises that do so.
- Small businesses looking into exports may hesitate at the thought of a lost shipment, foreign buyer non-payment, and other worries inherent to the exporting industry. The Ex-Im Bank helps small exporters get going on a stronger first step by, for example, offering no minimum premiums for small business export credit insurance policies.
- Many foreign exporters use their own governments’ export credit programs, and the Ex-Im Bank helps U.S.-based exporting companies stay competitive in the global market.
- American businesses that ship American-made products have even more incentive to work with the Ex-Im Bank.
- Small businesses branching into exports may need some extra liquidity and confidence to move into emerging markets or increase their operations (which creates jobs). Ex-Im Bank financing helps U.S. exporters branch into new markets and expand their operations much more easily.
- The Ex-Im Bank focuses on protecting American jobs and does so by financing exporters shipping American goods and services.
- Foreign exporters try to stay competitive with payment terms, and the Ex-Im Bank keeps American export businesses viable in the face of competition by allowing them to offer competitive terms with trade financing.
- The Ex-Im Bank does not compete with private sector lenders—it partners with them and helps fill export financing gaps for American exporters.
The Ex-Im Bank is a long-standing organization that has proven value despite some recent hiccups, such as the funding expiration in 2015. American exporters should contact a company like Drake Finance to learn about the services that Ex-Im Bank offers and the value of these solutions to the U.S. economy. With 16 years of experience in Ex-Im Bank financing and approved lender status, Drake Finance provides international trade finance solutions to American exporters. Only brokers who demonstrate excellence in the industry and a proven commitment to customer success achieve Ex-Im partnerships.
