In my last article I introduced you to the resources available through the Export-Import Bank of the United States (Ex-Im Bank). So, now that I’ve convinced you to look into their services, you may be wondering: "How do I begin?" The Ex-Im Bank knows you'll need assistance managing two basic objectives: how to borrow money and how to get paid. Whether you're interested in borrowing, getting paid, or both, you can find the appropriate service listed below to access the information you'll need to get started. 

If you want to borrow, check out the Working Capital Guarantee that lets you buy the materials you need to begin exporting, pay operating and overhead costs, and provides cash for international receivables. By securing financing for your international buyer's Ex-Im's insurance policy allows you to extend medium-term credit to your customers overseas. 

Select the most appropriate policy from the following to extend credit to your international customers, reduce your risk, and finance your accounts receivable with Ex-Im Bank's Single-Buyer Credit Insurance, Standard Multi-Buyer Credit Insurance, or Small Business Multi-Buyer Credit Insurance policies. 

The Ex-Im Bank assumes risks at levels unacceptable to most private lenders and insurance companies, expanding the options for any exporter interested in selling abroad. Ex-Im Bank allows you to secure adequate working capital, protect your company from foreign buyer nonpayment, and extend credit to your buyers. Everything they do is designed to give you the competitive advantage when selling abroad. 

The Ex-Im Bank states in their web site that a high percentage of Ex-Im Bank's transactions, approximately 85%, support small businesses, (implying that only 15% apply to large firms) with virtually no transaction too big or too small to help the smaller exporter. So if you think your company is too small to benefit from their services, think again, because they are mandated and dedicated to growing small businesses. 

The fact that 95% of the world's consumers live outside of the U.S. means it's becoming increasingly important for American businesses to sell internationally. The International Trade Administration reports that less than one percent of U.S. small businesses currently export. One obstacle is the difficulty in obtaining financing for overseas endeavors as credit markets slowly thaw. 

The Ex-Im Bank program aims to help small businesses begin exporting or expand their efforts. Many small companies are afraid to venture overseas because of the perceived financial risks of exporting. This is especially true with regard to developing nations where a lot of future sales can be made by those willing to step out of the "it's just too risky" paradigm. Rather than thinking and going outside the box, I suggest that you create a bigger box to engage in. Make the world your marketplace. The U.S. Ex-Im Bank is there to help you and to take the financial risk out of it. 

To be sure, Ex-Im Bank has set ambitious goals for five fiscal years, 2009-2014, including the production of $30 billion in small business activity and the addition of 5,000 small businesses to its portfolio. The support provided by the Ex-Im Bank results in export sales that otherwise would not have been made. This means that many more U.S. workers are employed to fill new export orders. In the Ex-Im Bank's news releases you can find current figures on the number of jobs created as a result of their programs and services. At the end of fiscal 2010, Ex-Im Bank was working with about 900 small businesses. Fully 85% of Ex-Im's work is with small businesses through loan guarantees—which generally cover 90% of a bank loan, including principal and interest—and export insurance. 

Ex-Im Bank set a record for its fiscal year ended September 30, 2010, giving $5 billion in small business loan guarantees. More is expected in 2011. Business owners apply for loans at an Ex-Im regional office or through a lending partner. Exporters can also apply through their own bank but may have to suggest working with Ex-Im Bank. 

Loans of any size qualify for Ex-Im Bank financing. Interest rates are set by the lender, and the loan has a term of one to three years. Those loans give small businesses the ability to build inventory and buy production equipment and give overseas customers more time to pay. 

On a personal note, a long-term friend and professional associate has used the U.S. Ex-Im Bank for more than 14 years. He exports worldwide and is very favorable towards the Ex-Im Bank. He once told me, "Don't tell my competitors about the Ex-Im. They are one of the reasons I enjoy exporting successfully." This is about as good a testimony as it gets from a long-time user of the U.S. Ex-Im Bank. By the way, he owns a very small exporting company; he has only three employees including himself. 

The world of commerce has become more complicated and faster paced worldwide requiring that you, the exporter, get all the assistance you can. The U.S. Ex-Im Bank is one more tool that you and other small- and medium-sized exporters can use to your successful advantage if you take the time and effort to follow through. 

From lumber to educational materials, from medical supplies to fire trucks, from Indiana to India, from New Hampshire to New Zealand, and from Arizona to Africa, the U.S. Ex-Im Bank has provided assistance to all of these and is there to help you too. You'll find more than 25 small business success stories at their website. Check it out and may your exports grow well and profitably.