Please join us on Nov 19th in Camden, NJ at the Export Finance Workshop facilitated by the World Trade Center of Greater Philadelphia. Please register at WTCGP website.
|Export Finance Workshop November 19, 2014
Learn the strategies to increase sales and reduce risk!
DATE AND TIME
November 19, 2014
8:00 am – 12:00 pm
The Waterfront Technology Center
200 Federal Street
Camden, NJ 08103
WTCGP MEMBERS: $45
FOR MORE INFORMATION, CONTACT:
Susan Mills Farrington
Office Manager & Membership Coordinator
|If financing is not part of your export strategy, you could be missing out on important sales or exposing your company to unnecessary risks.
Do not miss this opportunity to meet the region’s leading trade finance lenders and government finance representatives.
Receive the latest information on financing programs available with U.S. government backing from the Export – Import Bank of the United States and the Small Business Administration. You will also hear from companies like yours who have successfully utilized this financing to grow their international business.
Who should attend?
CEOs, CFOs, and international marketing managers of export-ready companies
You will learn how to:
- Utilize export credit insurance to protect against buyer non-payment, minimize risk, and offer extended credit terms to international buyers to increase sales;
- Obtain working capital loans with U.S. government backing to provide capital for inventory, hiring, and performance bonds to support export sales orders and free up needed capital;
- Offer financing at competitive rates to prospective customers to help close the sale;
- And more….
Euler Hermes provides detailed and insightful analysis of ten global macroeconomic factors to watch in 2014. The following are the first three game changers:
- China’s Transformation will be under control
- The U.S. will re-industrialize with or without easy money
- The Eurozone must keep its eye on the ball, but the ball is rolling
Read the full report here: Economic_outlook_Dec2013Jan2014_Macro_Top_ten_game_changers_in_2014
Being claim ready starts with three things: Coverage, Compliance, and a Complete Claims Package. Let’s delve into each one.
One of the most critical aspects of trade credit insurance deals with having coverage on the legal entity with whom you are trading. As you know, legal entities are only responsible for their debt obligations and have their own distinct credit profile or credit worthiness. Underwriters of trade credit insurance approve coverage on a legal entity. If you, as the insured, sell to a different legal entity than the one you have coverage on, the underwriter has grounds to deny your claim. We recommend that before you begin any trading relationship, you request information that clarifies the legal entities to which you are selling. In some cases, there may be a holding company, parent company, or subsidiaries and it is critical you understand the legal relationships with each other. Legal entities may also us various fictitious names such as trade styles or Doing Business As (DBAs). Requesting a W9 on your trading partner often helps this process.
Trade credit insurance policies are “contracts of adhesion” which means that the insured has to adhere to the conditions of the policy. In other words, a valid claim must be in compliance with the wording of the policy. For a claim to be paid, It is imperative to be in compliance in these key areas: paying premiums, reporting requirements, filing claims by the relevant deadlines, and providing appropriate supporting documentation. This is covered in a Complete Claims Package.
Complete Claims Package
We recommend starting a file for each of your trading partners and keeping the file current with each shipment. What sorts of information you keep will depend on the details of your coverage, but in general, the following represent some of the items an insurance carrier will request with any notification of claim form: purchase orders, proof of delivery, invoices, and statements of account. These seemingly commonplace documents can often be challenging to gather once a buyer goes into default. One insurance carrier, The Export-Import Bank of the United States of America (Ex-Im), places great importance on having the exporter prove, through documentation, that the buyer received the goods. Ex-Im’s position protects them and ultimately the U.S. taxpayer against seller fraud. It also helps with the collection process since documentation is evidence that the buyer received the goods. Those currently insured with Ex-Im are strongly encouraged to review their policies. Many sellers are selling on Incoterms of Ex-Works (EXW) and bills of lading show goods being delivered to a U.S. location before being exported. In this scenario, Ex-Im will require further proof that goods were received by the buyer. Trying to ascertain this information when the buyer is financially distressed can be difficult.
Pete represented Securitas at the 89th Annual IECA held Sept 29 – Oct 2 in Orlando Florida. He participated in a panel discussion regarding use of credit mitigation products in the energy sector. There is additional information regarding conference and presentation at
IECA Orlando, FL
On Oct 1, Euler Hermes released CAP / CAP+ product offering to help policyholders seize exceptional sales opportunities. The basis of the program is to provide up to three months coverage on buyers who have been partially approved, or previously declined. The attached press release includes additional details regarding product offering. Please feel free to call us if you have any questions regarding this product.
CAP Launch Press Release FINAL 1.10.13
Insightful analysis of global political and economic events in Greece, South America, Europe and Sub-Saharan Africa.
WTCGP-ISA Global Update #436