Financial Due Diligence for Your Exporting Business EXIM

Financial Due Diligence for Your Exporting Business EXIM Bank – Presentation John Brislin – Director – Seattle Regional Office

Export-Import Bank of the United States EXIM Bank is the official Export Credit Agency (ECA) of the U. S. Government. Mission: Job Through Exports - To support the sales of U. S. -made goods and services to create and maintain American jobs. § § Established in 1934 Headquartered in Washington, D. C. 12 Regional Offices nationwide Self-Sustaining & Independent

Our Financing Support Makes the Difference EX-IM Bank supports U. S. EXporters (Sellers) of U. S. - Made Goods and Services EX-IM Bank supports Foreign IMporters (Buyers) of U. S. - Made Goods and Services.

EXIM Bank – Strategic Partners Loans Policies Outreach • Delegated Authority Lenders • Registered Insurance Brokers • Regional Export Promotion Program Participants

EXIM Bank Products Risk Protection Working Capital International sales are challenging enough without the added risk of not receiving payment for your goods or services. EXIM’s export credit insurance provides payment coverage for both commercial and political risks. Moreover, your business can count on EXIM to protect your export sales to a single buyer or multiple buyers. An EXIM guaranteed credit line may provide the vital funds you need to fulfill new orders. These funds may be used to purchase finished products, raw materials, and supplies as well as cover labor and overhead costs. This guaranteed credit line may even cover standby letters of credit used as performance bonds or bid bonds. Extend Credit to Buyers Term Financing EXIM’s export credit insurance enables your company to offer competitive “open account” terms instead of requiring your foreign buyers to pay cash-in-advance, use credit cards, or secure letters of credit. Furthermore, your insured foreign receivables may be assigned to a commercial lender, thereby increasing your company’s borrowing base and accelerating its cash flow. EXIM can provide your foreign buyers with term financing at competitive interest rates and longer repayment terms. Foreign buyers can use these funds to buy U. S. -made capital goods and services, helping your business go global.

What is an Export Credit Agency (ECA) Export Credit Agency An agency in a creditor country that provides insurance, guarantees, or loans for the export of goods and services. Export Credits Export credits are government financial support, direct financing, guarantees, insurance or interest rate support provided to Foreign Buyers to assist in the financing of the purchase of goods from national Exporters.

OECD - Export Credit Agency (ECA) Organisation for Economic Co-operation and Development (OECD) Country Risk Classifications These classifications are produced solely for the purpose of setting minimum premium rates for transactions supported according to the Arrangement, and reflect country risk. Minimum Interest Rates These rates apply to official financing support for export credits. Such minimum interest rates are the relevant Commercial Interest Reference Rates (CIRRs), which have been established for each currency of the Participants to the Arrangement and which are set on the 15 th of each month.

OECD - Export Credit Agency (ECA) Organisation for Economic Co-operation and Development (OECD) Sector Understandings stipulate that minimum interest rates and maximum terms that apply to official financing support for export credits • Nuclear Power Plants (Annex II) • Civil Aircraft (Annex III) • Renewable Energy, Climate Change Mitigation & Water Projects (Annex IV)

Export Credit Agency (ECA) Country Name of the Export Credit Agency (OECD ECA Working Group) Australia Export Finance and Insurance Corporation (EFIC) Austria Oesterreichische Kontrollbank AG (Oe. KB) Belgium Credendo Canada Export Development Canada (EDC) Czech Republic Export Guarantee and Insurance Corporation (EGAP) Czech Export Bank Denmark Eksport Kredit Fonden (EKF) Estonia Kred. Ex Finland Finnvera Finnish Export Credit Ltd (FEC) France Bpifrance Assurance Export Germany Euler Hermes Greece Export Credit Insurance Organisation (ECIO)

Export Credit Agency (ECA) Country Name of the Export Credit Agency (OECD ECA Working Group) Hungary Hungarian Export Credit Insurance Ltd Hungarian Export-Import Bank PLC (EXIM) Israel The Israel Export Insurance Corp. Ltd. (ASHRA) Italy Servizi Assicurativi del Commercio Estero (SACE) Japan Nippon Export and Investment Insurance (NEXI) Japan Bank for International Cooperation (JBIC) Korea Trade Insurance Corporation (K-SURE) The Export-Import Bank of Korea (KEXIM) Latvian Guarantee Agency (LVA) Luxembourg Office du Ducroire (ODL) Mexico Banco National de Comercio Exterior (BANCOMEXT) Netherlands Atradius New Zealand Export Credit Office (ECO)

Export Credit Agency (ECA) Country Name of the Export Credit Agency (OECD ECA Working Group) Norway Export Credit Norway (GIEK) Poland Korporacja Ubezpieczén Kredytów Eksportowych (KUKE) Portugal Companhia de Seguro de Créditos (COSEC) Slovak Republic Export-Import Bank of the Slovak Republic (Eximbanka SR) Slovenia Slovenska izvozna in razvojna banka, d. d. (SID) Spain Compañía Española de Seguros de Crédito a la Exportación (CESCE) Sweden Exportkreditnämnden (EKN) AB Svensk Exportkredit (SEK) Switzerland Swiss Export Risk Insurance (SERV) Turkey Export Credit Bank of Turkey (Türk Eximbank) United Kingdom UK Export Finance (UKEF) United States Export-Import Bank of the United States (Ex-Im Bank)

EXIM Bank Financial Due Diligence EXIM Bank's Charter requires “Reasonable Assurance Of Repayment” for transactions supported. EXIM Bank uses Credit Reports, Trade References, Bank References, Financial Statements and Market Ratings to evaluate Foreign Buyers / Debtors. • Country Limitation Schedule • Trade Reference Form • Credit Report • Short-Term Credit Standards

Country Limitation Schedule (CLS) EXIM Bank’s Country Limitation Schedule (CLS) parameters: • What Country are you selling to? • What type of Buyer are you selling to Public Sector Buyer (B 2 G) or Private Sector Buyer (B 2 B)? • What Time Period is extension of credit and/or financing needed? • Are there any Foot Notes related to the Country in EXIM Bank’s CLS?

Country Limitation Schedule (CLS)

Trade Reference Form • Buyer provides your company with names of other Suppliers they have previously bought from. • Your company can contact the other Suppliers directly to inquire about their payment history.

Trade Reference Form

Credit Report Sources Reliable international credit information is a passport to opportunity. As the flow of commerce around the globe increases, many U. S. enterprises are increasing their interest in global markets as well. While it can be lucrative, there are many potential pitfalls that must be addressed to mitigate risk and improve profitability. There are three major business credit scoring firms in the United States that most businesses rely upon: • Dunn & Bradstreet (D&B) • Equifax • Experian

Credit Report Sources - International Cedar Rose International Services Ltd. Middle East & Africa Website: www. cedar-rose. com Coface Worldwide Website: www. coface. com Credexim Corp. United States, Europe, Latin America Website: www. credexim. com

Credit Report Sources - International Creditreform International Europe & China Website: www. creditreform. com Credit Reports World Ltd. Website: www. creditreportsworld. com Credit. Risk. Monitor Website: www. crmz. com

Credit Report Sources - International Creditsafe USA United States & Worldwide Website: www. creditsafe. com CRIBIS / Skyminder. com - CRIF United States, Canada, South America, Italy, France, Worldwide Website: www. skyminder. com or www. crif. com Dun & Bradstreet Worldwide Website: www. dnb. com

Credit Report Sources - International Experian Worldwide Website: www. experian. com FCIB – Association of Executives in Finance, Credit and International Business / NACM Corp. – National Association of Credit Management Worldwide & Europe Website: www. fcibglobal. com GLOBIS – Global Business Information Services, Inc. Worldwide Website: www. glo-bis. com

Credit Report Sources - International Graydon International Website: www. graydoninternational. com ICTF – The Association of International Credit and Trade Professionals Worldwide Website: www. ictfworld. org ICP – International Company Profile Africa, Europe, Middle East, The Americas Website: www. icpcredit. com

Credit Report Sources - International. Credit. Reports. com Website: www. internationalcreditreports. com Kreller Business Information Group Worldwide Website: www. kreller. com Kutz Group Africa, Asia and Oceanic, Europe Website: www. kutzgroup. tripod. com

Credit Report Sources - International Owens Online, Inc. Worldwide Website: www. owens. com RIME Information Bureau Ltd. Middle East / North Africa Website: www. rimeib. com SINOTRUST – Sinotrust International Information & Consulting Co. , Ltd. China Website: www. sinotrust. cn

What a Credit Report Should Include

Short-Term Credit Standards (STCS) define the criteria EXIM Bank will apply in evaluating the creditworthiness of the Primary Source of Repayment (PSOR) or, in the case of the Multi-Buyer product, the ability of the Exporter to manage and evaluate credit in a reasonable and prudent manner. EXIM Bank also has Medium-Term & Long-Term Credit Standards.

Short-Term Credit Standards

EXIM Financial Due Diligence Resources Country Limitation Schedule (CLS): which indicates whether EXIM Bank is open for business with Public Sector or Private Sector Foreign Buyers and if we are open for Short Term (Up to 1 year), Medium Term (From 2 to 7 Years) , or Long-Term (Over 7 Years). http: //www. exim. gov/tools/countrylimitationschedule/index. cfm Trade Reference Form: where you can ask your Foreign Buyers / Agents / Representatives / Distributors to provide you with names of other U. S. Suppliers they have previously bought from. You can contact the U. S. Suppliers directly to inquire about their payment history: http: //www. exim. gov/sites/default/files/forms/eib 99 -14. pdf

EXIM Financial Due Diligence Resources Sources of Credit Information Fact Sheet: of what information that EXIM Bank requires in a Credit Report as well as resources to obtain Credit Reports on your Foreign Buyers / Agents / Representatives / Distributors: http: //www. exim. gov/sites/default/files/forms/inst-12 -009. pdf Short-Term Credit Standards: used to qualify U. S. Exporters and Foreign Buyers / Agents / Representatives / Distributors under EXIM Bank Export Credit Insurance Policies: http: //www. exim. gov/sites/default/files/forms/inst-12 -004. pdf

Who is Your Foreign Buyer ? Your Foreign Buyer can present himself as a “Captain of Industry” over the Internet or at a Trade Show !

Who is Your Foreign Buyer Actually? Is Your Foreign Buyer really “Poor Uncle Pennybags” or “Rich Uncle Pennybags” when it comes time to pay you?

How EXIM Bank Can Help You With export credit insurance, EXIM Bank can cover your non-payment risk and “take care” of your Foreign Buyer!

Secret to Export Success Exporting Takes Teamwork to Succeed - John Brislin Teamwork is the Fuel that allows Common People to attain Uncommon Results - Andrew Carnegie

Photo Your EXIM Bank Contact: John Brislin Director Seattle Regional Office Tel: (206) 728 -2264 Cell: (206) 307 -5289 Email: john. brislin@exim. gov www. exim. gov 1 -800 -565 -3946 (EXIM) © 2016 Export-Import Bank of the United States