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Turn Export Opportunities into Sales: New Online Trade Finance Guide Makes it Easier than Ever

July 27, 2022

This post contains external links. Please review our external linking policy.

Yuki Fujiyama is a trade finance specialist in the Office of Finance and Insurance Industries and the author of the Trade Finance Guide: A Quick Reference for U.S. Exporters.

Many U.S. small and medium-sized enterprises (SMEs) struggle to find ways to expand their sales, unaware of the economic potential that lies in diverse global markets. And, with 95% of the world’s consumers residing outside of the United States, it can be daunting to consider how to reach them and navigate global trade.

Front cover image of ITA's Trade Finance Guide, A Quick Reference for U.S. Exporters

The U.S. Department of Commerce’s International Trade Administration (ITA) is dedicated to helping U.S. businesses reach success through exports. One of the ways we do this is through ITA’s free online resource, our Trade Finance Guide: A Quick Reference for U.S. Exporters.

This concise, easy-to-understand and use tool was first published in 2007 and specifically developed as a how-to guide for U.S. SMEs seeking to enter and expand their businesses in global markets, while also overcoming common challenges to leverage export opportunities into actual sales. Whether you’ve been in business for years or are just starting out in the export market, we have the information and resources you need to make well-informed decisions and get your business on the map.

Let me walk you through our guide.

What is the Trade Finance Guide?

The Trade Finance Guide covers the most commonly used trade finance techniques and U.S. government export finance programs written in plain, easy-to-understand language. The Guide is:

  • A “60-minute” self-learning tool for America’s new-to-export SMEs that wish to learn about their financing options and how to ensure getting paid from export sales.
  • A user-friendly counseling tool for international credit, banking, and trade finance professionals and export counselors for client assistance and business development.
  • A flexible educational tool for academic institutions teaching international business subjects.

Our guide uses a no-nonsense approach to make it easier for new-to-export SMEs to learn the basics of trade finance and to understand how to mitigate the risk of non-payment while winning new cross-border sales opportunities and assuring the delivery of goods and services to importers.

What’s New 2022?

The Guide is now an online-based publication! ITA will continuously update the new online edition of the Guide, including making available a downloadable version with revisions annually.

The modernizedGuide has been refined to provide better clarity, and adds two new chapters targeting SMEs in their recovery from the COVID-19 pandemic and to explore financial innovation through digitalization:

  • Chapter 1:   Access to Capital for Startups in Global Markets
  • Chapter 16: Emerging Trends: The Digitalization of Trade Finance

Finally, the Trade Finance Guide website will post short resource videos in the following chapters:

We hope that you’ll use this information to think globally when planning business strategy. Remember that ITA has dedicated staff to assist you, regardless of what step in the process you’re in.

The 2022 online edition of the Trade Finance Guide was developed in collaboration with the following private-sector organizations and U.S. government export finance agencies.

Private Sector Organizations:

  • BAFT:  Bankers Association for Finance and Trade
  • FCIB:  Finance, Credit, and International Business Association
  • ICTF:  Association of International Credit & Trade Finance Professionals
  • IFA:  International Factoring Association
  • ITFA:  International Trade and Forfaiting Association – Americas Regional Chapter
  • NASBITE:  NASBITE International
  • Thunderbird: Thunderbird School of Global Management at Arizona State University

U.S. Government Export Finance Agencies:

For more information about the Trade Finance Guide, contact Yuki Fujiyama, the author and project manager of the Guide, in ITA’s Office of Finance and Insurance Industries via email at yuki.fujiyama@trade.gov .

Posted in Export Assistance, Industry and Analysis, Trade Finance, Uncategorized | Tagged , | Comments Off on Turn Export Opportunities into Sales: New Online Trade Finance Guide Makes it Easier than Ever

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Fostering Commercial Cooperation under the Japan-U.S. Strategic Energy Partnership (JUSEP) to Advance a Free and Open Indo-Pacific

January 27, 2020

The International Trade Administration (ITA) is organizing activities that support U.S. commercial cooperation with Japan in third markets to advance bilateral and regional goals under the Japan-U.S. Strategic Energy Partnership (JUSEP).  This activity is driven by the administration’s broader policy objectives in the Indo-Pacific region. President Trump announced the vision of a free and open Indo-Pacific in Da Nang, Vietnam, in November 2017. The United States is advancing the goal of a free and open Indo-Pacific rooted in respect for: sovereignty; free, fair, and reciprocal trade; transparent governance; and private sector-led economic growth.

The unfettered flow of energy supplies is vital to the stability and security that are necessary for economic growth in the region. The U.S. government launched the Asia Enhancing Development and Growth through Energy, or Asia EDGE, initiative on July 30, 2018, as a mechanism for promoting and supporting open, transparent, and rules-based development policies that would ensure such energy security. Asia EDGE is a U.S. whole-of-government effort to grow sustainable and secure energy markets throughout Asia by promoting U.S. exports, mobilizing private sector investment, removing trade barriers, and strengthening standards and procurement practices.

The United States is working with Japan as a like-minded country to advance the goals of a free and open Indo-Pacific and Asia EDGE. The United States and Japan are strong allies and the world’s first and third largest economies, accounting for about 30 percent of global gross domestic product. On October 7, 2019, the United States and Japan signed the U.S.-Japan Trade Agreement, covering new market access for agriculture and certain industrial goods, as well the U.S.-Japan Digital Trade Agreement. The agreements demonstrate the deepening partnership between the United States and Japan, and our mutual commitment to promoting free, fair, and reciprocal trade throughout the Indo-Pacific.

Through JUSEP the United States and Japan have committed to developing energy infrastructure projects in third-countries. It is a multiagency, bilateral engagement that seeks to promote capacity building, project development, and project financing in several regions, including Southeast and South Asia. Commercial cooperation under JUSEP will strengthen joint strategic efforts in the region and enhance U.S. and Japanese private sector competitiveness by making U.S. and Japanese government resources available to them.

ITA, in cooperation with Japan’s Ministry of Economy, Trade, and Industry (METI), has organized several events that bring the U.S. and Japanese private sectors together to inform them of the tools the governments jointly offer and to help facilitate partnerships between U.S. and Japanese companies pursuing regional energy projects. These events have included the following:

  • 2018 December U.S.-Japan Cooperation on Energy Infrastructure Development in Vietnam Workshop in Ho Chi Minh City: A half-day bilateral workshop that included panel discussions on financing tools, private sector presentations, and a roundtable discussion on opportunities and challenges in Vietnam’s energy sector.
  • 2019 March Jakarta Indonesia-U.S.-Japan LNG Workshop: A trilateral workshop organized with panel discussions held on LNG Business Opportunities in Indonesia, U.S. and Japan Overseas Energy Strategy, Procurement, Gas Distribution, Regional Electrification, and Financing.
  • 2019 August Bangkok JUSEP Meeting: The private sector-inclusive session of the government-to-government JUSEP meeting where issues including Thai energy policy, regional connectivity, and project financing were discussed.
  • 2019 October Singapore Workshop on JUSEP Financing: A workshop discussion that included public and private financing of infrastructure projects.

August 2019 JUSEP Meeting in Bangkok for January Blog

Pictured: Attendees of the August JUSEP meeting in Bangkok.

These events have been supplemented by several others that bring the private sector into contact with government agencies involved in training or financing efforts in the region. These agencies include the Japan Oil, Gas and Metals National Corporation (JOGMEC), Japan Bank for International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI).

 

U.S. government agencies and Japanese counterparts are also working to develop the policies and mechanisms to implement JUSEP and organizing specific programs to deliver on these commitments. For example:

  • In August 2019, the United States and Japan announced the Japan-U.S. Mekong Power Partnership (JUMPP), to which the United States government committed an initial $29.5 million under Asia EDGE to promote economic growth and enhanced electricity interconnections among the countries in the Mekong region through free, open, stable and rules-based regional electricity markets.
  • In September 2019, Japan announced intentions to increase its public and private financing for JUSEP activities by another $10 billion. The funding will be utilized to enhance capacity building trainings, which will further promote joint and collaborative activities between the United States and Japan by facilitating financing for projects to supply LNG or build LNG infrastructure in the Indo-Pacific region. This Japanese public finance facility includes support from JOGMEC, JBIC, and NEXI.

In 2020, ITA and METI, with the support and involvement of other federal government agencies, plan to continue this program of events that will further promote the goals of JUSEP, which will enhance export opportunities for U.S. companies in the energy sector.

 

Posted in Access Asia, APEC, Trade Finance, Trade Policy | Tagged | Comments Off on Fostering Commercial Cooperation under the Japan-U.S. Strategic Energy Partnership (JUSEP) to Advance a Free and Open Indo-Pacific

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STRENGTHENING CREDIT CONDITIONS FOR EXPORTING SMALL AND MEDIUM-SIZED ENTERPRISES

April 6, 2018

This post contains external links. Please review our external linking policy.

Ericka Ukrow is a Senior International Trade Specialist specializing in Financial Services at the International Trade Administration.

Photo of TFAC meeting in progress, Feb. 22, 2017. From left to right front row: TFAC Chair Kevin Klowden, Commerce Secretary Wilbur Ross, Commerce Deputy Assistant Secretary for Services James Sullivan, Designated Federal Officer for the TFAC Ericka Ukrow.

Meeting of the TFAC, February 22, 2018. From left to right front row: TFAC Chair Kevin Klowden, Commerce Secretary Wilbur Ross, Commerce Deputy Assistant Secretary for Services James Sullivan, Designated Federal Officer for the TFAC Ericka Ukrow.

Exporters, lenders, and researchers are working together to improve options for trade financing through the Department of Commerce’s Trade Finance Advisory Council (TFAC).

In an increasingly interconnected global economy, trade is taking a prominent role in our country’s economic growth.

The availability of finance is essential for a vigorous trading system. Most export transactions are supported by some form of financing or credit insurance. However, significant gaps in the global provision of trade finance remain.

Globally, the trade finance gap in 2017 was estimated at $1.5 trillion, with small and medium-sized enterprises (SMEs) facing the greatest hurdles to access trade finance.

The TFAC advises the Secretary of Commerce on effective ways to increase access to financing resources for all U.S. exporters, especially SMEs. With up to 20 private-sector members representing financial and insurance services providers, manufacturing firms, trade finance industry associations, and research organizations, the TFAC’s thought-leadership coordinates perspectives from diverse stakeholders into the development of policies and programs in this area.

These insights help direct Commerce’s actions toward conducive framework conditions that would amplify U.S. exporters access to strategic educational and financing resources.

Over the last fifteen months, the TFAC has focused on:

  1. export finance best practices;
  2. enabling new private sector channels for the flow of credit to exporting SMEs;
  3. education strategies to reduce the information gap across government, community banks, and other enablers of SME finance;
  4. addressing financing process obstacles that impede SME credit;
  5. analyzing trade credit insurance underutilization in the United States; and
  6. reviewing the performance of alternative export credit agencies’ models.

Photo of TFAC meeting in progress, Feb. 17, 2018. From left to right: Alan Beard and Patricia Gomez (new members), Lou Tierno – Fulton Financial Corporation, Stacey Facter – Bankers Association for Finance and Trade, Peter Bowe – Ellicott Dredges, Gary Mendell - Meridian Finance Group, David Herer – ABC-Amega.

Meeting of the TFAC at the Commerce Department, February 22, 2018. From left to right: Alan Beard and Patricia Gomez (new members), Lou Tierno – Fulton Financial Corporation, Stacey Facter – Bankers Association for Finance and Trade, Peter Bowe – Ellicott Dredges, Gary Mendell – Meridian Finance Group, David Herer – ABC-Amega.

At the February TFAC meeting, Commerce Secretary Wilbur Ross recognized the Council for its critical role in advancing the Administration’s goal of reducing U.S. trade deficits by empowering more SMEs with financing solutions that would increase their export opportunities.

“While we seek to level the playing field and negotiate more favorable terms with our trading partners, we count on you to continue empowering SMEs in the international arena. Without adequate access to finance, it is difficult for U.S. exporters to sell their products and services globally.”

He also encouraged Council members to identify how emerging technologies, such as blockchain, could facilitate trade finance solutions and reduce risk for U.S. SME exporters.

The TFAC also welcomed Secretary Wilbur Ross’ new appointed members this year:

  • Steven Bash, Senior Vice President, International Banking, City National Bank
  • Alan Beard, Managing Director, Interlink Capital Strategies
  • Russell D’Souza, Vice President, Corporate Treasurer, Hanesbrands, Inc.
  • Patricia Gomes, Managing Director, Regional Head Global Trade and Receivables Finance North America, HSBC Bank USA, N.A.
  • William Browning, Senior Vice President, Business Credit – Trade Finance Manager, First National Bank

Photo of TFAC meeting in progress, Feb. 22, 2018. From left to right: Todd McCracken - National Small Business Association, Sergio Rodriguera - The Credit Junction, Karsten Herrmann - Munich Reinsurance America, Tim Gaul - Caterpillar, and new members Russell D’Souza and Steven Bash.

Meeting of the TFA at the Commerce Department, February 22, 2018. From left to right: Todd McCracken – National Small Business Association, Sergio Rodriguera – The Credit Junction, Karsten Herrmann – Munich Reinsurance America, Tim Gaul – Caterpillar, and new members Russell D’Souza and Steven Bash.

These new appointees expand the Council’s expertise in their representation of both users and providers of trade finance in the manufacturing, banking, and management consulting services sectors.

The TFAC expects to discuss improving the credit conditions and diversifying financing sources for U.S. exporters at their Spring meeting.

If you would like to learn more about the TFAC, you can visit our website or you can contact us at TFC@trade.gov.

If you are interested in becoming a member of the TFAC, stay tuned! The Council may be looking for applicants this summer. You can learn more here.

Posted in Advisory Committee, Trade Finance, Trade Policy, Wilbur Ross | Comments Off on STRENGTHENING CREDIT CONDITIONS FOR EXPORTING SMALL AND MEDIUM-SIZED ENTERPRISES

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The NASBITE Certified Global Business Professional Credential Program Helps Advance U.S. Exports and International Trade

September 14, 2017

About the authors: Yuki Fujiyama is a trade finance specialist in the Office of Finance and Insurance Industries and the author of the Trade Finance Guide: A Quick Reference for U.S. Exporters. Fujiyama currently serves as an ex-officio Board Member of NASBITE International.  Cory Simek, the Executive Secretary of the Missouri District Export Council, currently serves as the Director of the U.S. Commercial Service – St. Louis, Missouri.

This post contains external links. Please review our external linking policy.

Helping U.S. businesses, especially small- and medium-sized enterprises (SMEs), enter and compete in global markets is a core mission of the International Trade Administration (ITA), the federal government’s lead export promotion agency.

As part of that ongoing effort, ITA and the University of Missouri International Trade Center–a joint program of the Missouri Small Business & Technology Centers and the University’s Robert J. Trulaske, Sr. College of Business–recently partnered to present a three-day interactive training workshop designed for those seeking to earn the Certified Global Business Professional (CGBP) credential.

Participants of the NASBITE CGBP Preparation Training Workshop on August 8-10, 2017 at the Robert J. Trulaske, Sr. College of Business at the University of Missouri in Columbia, Mo.

Participants of the NASBITE CGBP Preparation Training Workshop on August 8-10, 2017 at the Robert J. Trulaske, Sr. College of Business at the University of Missouri in Columbia, Mo.

The CGBP credential program, which helps advance U.S. exports and international trade, is administered by NASBITE International (NASBITE), a non-profit and ITA strategic partner.  Launched in 2005, the NASBITE CGBP provides a benchmark for competency in global commerce by certifying an individual’s ability to conduct international business at the professional level across four main categories:

  • Global Business Management
  • Global Marketing
  • Supply Chain Management
  • Trade Finance

These categories capture the key challenges facing SMEs in today’s highly competitive global business environment.

To become a CGBP, a candidate must pass a three-hour exam comprising 150 multiple-choice questions, and have completed two years of either college-level study or work in global commerce.

NASBITE CGBP – Certified Global Business Professional – Credential Logo

NASBITE CGBP – Certified Global Business Professional – Credential Logo

Since 2005, ITA has used the CGBP credential program to enhance the ability of its employees to assist American SME exporters in accessing global markets.  The CGBP credential enables ITA team members to diversify their skills and stay abreast of the ever-changing aspects of international trade.  To date, almost 2,000 professionals worldwide, including several hundred ITA trade specialists and commercial officers, have been awarded the CGBP credential.

The three-day workshop was facilitated by NASBITE Past President, Jim Foley, who is currently serving as the Director of the Illinois SBDC International Trade Center at Bradley University and as the National Co-Chair of the International Trade Committee of America’s SBDC, which represents a nationwide network of approximately 1,000 SBDCs.  ITA co-facilitated the workshop’s trade finance session and helped participants learn about the methods of payment and export finance options described in the U.S. Commerce Department’s Trade Finance Guide.

In addition to the annual CGBP Preparation Training Workshop, the University of Missouri International Trade Center actively collaborates with ITA’s two local U.S. export assistance centers in St. Louis and Kansas City to assist Missouri-based SMEs with export planning and foreign market sales.  The Center won the 2016 President’s “E” Award for Export Service in recognition of its dedication to supporting Missouri SMEs in understanding the export process and entering new international markets.

In 2016, Missouri’s $14 billion in goods exports helped contribute to the $2.21 trillion of U.S. goods and services exports. In 2015, nearly 88,000 U.S. jobs were supported by goods exports from Missouri.  In 2014, over 5,000 SMEs in Missouri exported their goods to global markets, accounting for 85 percent of Missouri goods exporters.

With the new knowledge gained from the three-day workshop at the University of Missouri, participants, who are ready to take the next step in obtaining the CGBP credential, are now more equipped to enter, grow, and succeed in global markets!

Do you need more info on how to become a CGBP?

Visit the NASBITE website at http://nasbite.org.

Do you want to learn more about how to enter, grow, and succeed in global markets?

Visit the U.S. government’s export portal at https://www.export.gov.

Posted in Export Assistance, innovation, Strategic Partners, Trade Finance | Comments Off on The NASBITE Certified Global Business Professional Credential Program Helps Advance U.S. Exports and International Trade

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First Meeting of Trade Finance Advisory Council Seeks Increased Access to Finance for U.S. Exporters

December 12, 2016

Ericka Ukrow is a Senior International Trade Specialist in the Office of Finance and Insurance Industries

The Department of Commerce has responded to the needs of its clients and partners – it is stepping up efforts to expand private sector trade finance with the inaugural meeting of the Trade Finance Advisory Council (TFAC).

The Council is comprised of 20 private-sector leaders representing banks, financial technology companies, other trade finance organizations, exporters, and a research institution charged with advising the U.S. Commerce Secretary on policies and programs that can help expand access to private sector trade finance for U.S. exporters, especially small and medium sized enterprises (SMEs), and educate them about the resources available.

meeting

TFAC members sharing their perspective on key priorities for the TFAC with Commerce officials.

In her remarks last month to the Council, Secretary Penny Pritzker underscored the importance that trade finance plays in supporting trade. “Nearly all global merchandise trade, worth in excess of $18 trillion annually, is supported by some sort of finance or credit insurance. Put simply: without trade finance, there is no trade,” she said.

More of Secretary Pritzker’s tweets can be found here:

https://twitter.com/PennyPritzker/status/799655952257466368

https://twitter.com/PennyPritzker/status/799652779472076800

Acknowledging that the federal government is a critical source of American exporters’ financing needs, Secretary Pritzker reminded all participants that ultimately, it is the private sector that finances approximately 98 percent of U.S. export transactions. Accordingly, she affirmed the Department’s commitment to working collaboratively with the private sector in supporting efforts that will enhance the financing environment of our exporters and their foreign buyers.

Deputy Secretary Andrews shared Commerce’s priorities and vision for the TFAC. “Without adequate levels of trade finance,” he said, “companies considering whether to expand overseas might never do so; and companies already engaged in exporting may not expand to new markets. This limits the potential for a key element of our country’s economic growth strategy – ultimately costing us jobs that otherwise would have been created. That is why access to finance has been an important part of the Administration’s export agenda.We need industry to help us find solutions to the systemic barriers that impact this sector,” he added.

Council’s Key Priorities

Under direction of the Advisory Council Chair Chris Bozek, a seasoned banker and now Bank of America Merrill Lynch’s North America Head of Trade and Global Product Executive, Council members deliberated and established four initial areas of focus:

  • Innovation and Financial Technology
  • Collaboration and Partnerships
  • Education and Outreach
  • Market Information

These key areas align with the Secretary’s shared vision.

Other Speakers

Recognizing the important role of federal export financing agencies and regulators in the dialogue, Commerce invited representatives from the Export-Import Bank, Small Business Administration, U.S. Department of Agriculture, and the U.S. Department of The Treasury to brief members on their perspectives in this area.

Council members also had the opportunity to learn about existing Commerce resources that support U.S. exporters such as the Trade Promotion Coordinating Committee (TPCC), the Strategic Partnership Program, guides to exporting and trade finance, market intelligence reports, and trade missions. They also learned about financing programs and services that the Minority Business Development Agency offers to its client companies.

In his closing remarks, Acting Assistant Secretary for Industry and Analysis, Ted Dean, assured members that “in collaboration with the broader U.S. government, Commerce stands ready to work with Council members to ensure they have the support they need to provide important insights on opportunities to enhance the trade finance environment for our exporters.”

It was an inspiring environment, underscoring that achieving an enhanced financing environment for American exporters is not a task that government can do alone. It must be built on a commitment of collaborative work between the government, private sector and academia. This meeting marked a key step to embracing this path.

The Council is scheduled to hold its second meeting in early spring of 2017.

To learn more about the Department of Commerce Trade Finance Advisory Council, please visit www.trade.gov/tfac or contact us at TFAC@trade.gov.

Posted in Trade Finance, Uncategorized | Comments Off on First Meeting of Trade Finance Advisory Council Seeks Increased Access to Finance for U.S. Exporters

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NEI/NEXT Priority Objective: Expand Access to Finance for U.S. Exporters

July 10, 2014

This post contains external links. Please review our external linking policy.

Yuki Fujiyama is a trade finance specialist with the Office of Finance and Insurance Services Industries in the International Trade Administration.  He serves on the Department’s liaison team to the U.S. Export-Import Bank and he is the author of The Trade Finance Guide: A Quick Reference for U.S. Exporters.

Attendees at the Seminar learned the best ways to get paid from export sales, as part of a continued effort to support U.S. exporters.

Attendees at the Seminar learned the best ways to get paid from export sales, as part of a continued effort to support U.S. exporters. You can learn about this in our Trade Finance Guide.

The U.S. government is focusing on expanding access to finance for U.S. exporters, especially for small and medium-sized enterprises (SMEs), and their foreign buyers.

On June 30, the U.S. Department of Commerce partnered with a number of local organizations and federal agencies to present The Global Connect: Arlington Trade Finance Seminar at Arlington Economic Development in Northern Virginia.

Expanding access to export financing is one of the five priority objectives under NEI/NEXT, the next phase of the President’s National Export Initiative, a customer-focused initiative to ensure that more American businesses can fully capitalize on markets around the world.

Despite recent improvements in the economy, many U.S. businesses, especially SMEs and minority-owned firms, still face significant challenges in financing their export transactions.  The Arlington seminar helped local SMEs learn ways to overcome such challenges by following NEI/NEXT’s three key trade finance strategies:

  1. Engage and educate more commercial lenders and private-sector partners on U.S. government export financing and insurance programs.
  2. Educate more U.S. businesses on how to utilize the government and commercial trade finance resources that can help turn their export opportunities into actual transactions.
  3. Streamline services provided by U.S. government export financing and promotion agencies.

In addition to these finance strategies, participants also explored:

  • getting paid from export sales;
  • getting paid in foreign currencies;
  • taking advantage of  export assistance resources and U.S. Government export financing programs;
  • identifying U.S. export opportunities in Latin America; and,
  • finding global business development resources for U.S. Hispanic and Other Minority-Owned Businesses.

With the new knowledge gained from Global Connect Arlington, participants are now more equipped to enter, grow and succeed in global markets!

Do you need more info on trade finance? Our Trade Finance Guide is a great place to start!

Posted in National Export Initiative, Trade Finance | Tagged , | Comments Off on NEI/NEXT Priority Objective: Expand Access to Finance for U.S. Exporters

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How to Get Paid for Your Aerospace Exports

June 17, 2014

This post contains external links. Please review our external linking policy.

Fred Elliot is a Trade Specialist with the Aerospace Team at the International Trade Administration.

Photo of an airplane engine.Have you ever wondered if you should extend credit to your overseas customers in the same way you do your national customers? Or whether your banking relationships are solid enough to allow this type of credit?

Now’s the time to start getting some answers. Register now for the July 24th Trade Finance Webinar for U.S. Aerospace Exporters and gain expert insight about topics such as:

  • Dos and don’ts of export finance;
  • Methods of payment from overseas customers;
  • How the Export-Import Bank and the Small Business Administration (SBA) can help finance aerospace exports, and;
  • Ways the U.S. Department of Commerce is helping aerospace manufacturers learn about export opportunities and how to take advantage of them.

Companies in southern Ohio are welcome to participate in-person in Cincinnati, where you can meet one-on-one with finance experts from the Export-Import Bank, SBA, the U.S. Department of Commerce’s International Trade Administration, and PNC Bank, who can answer any questions you may have.

Both webinar and in-person attendees will leave this event better prepared to succeed in global business.

You can register or find more details online, or contact Howard Thompson of the Ohio Aerospace Institute at (440)-962-3237.

Posted in Export Assistance, Trade Finance | Tagged , , , , , | Comments Off on How to Get Paid for Your Aerospace Exports

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Global Connect: Arizona Trade Finance Seminar: A Must Attend Seminar to Learn How to Access Capital and Financing for Exports

February 13, 2014

Yuki Fujiyama is a trade finance specialist with the Office of Finance and Insurance Industries in the International Trade Administration.

The Arizona Trade Finance Seminar takes place Feb. 21, 2014 at the Thunderbird School of Management.

The U.S. Department of Commerce is partnering with a number of local organizations and federal agencies in offering The Global Connect: Arizona Trade Finance Seminar at the Thunderbird School of Global Management on February 21 in Glendale, Ariz.

This seminar will be available in person and via teleconference, covering a series of important export finance subjects:

  • How to get paid from export sales;
  • Ways to approach and work with banks to enter and grow in global markets;
  • Steps to access export working capital and trade credit;
  • How to increase export sales;
  • Methods of receiving payment in foreign currencies;
  • U.S. government export assistance resources; and
  • Global business development resources for minority-owned businesses.

Global Connect: Arizona will bring together experts from both the public and private sectors to discuss resources available to U.S. exporters. This applies to businesses of any size for their financing needs.

One-on-one counseling sessions are also available to provide export finance guidance specific to the needs of your organization.

Support for Hispanic-Owned Businesses

This training is open to businesses Across the United States, there are 2.3 million Hispanic-owned businesses, according to the latest data, and more than 10 percent of Arizona businesses are Hispanic-owned.

Data also show that minority-owned businesses are twice as likely to export as other U.S. firms. As Hispanic-owned businesses in Arizona and across the country look outside U.S. borders for more sales, it will be important for them to understand their finance options.

This session will be a crucial educational tool for these business leaders, and a great augmentation to the International Trade Administration’s Spanish-language Trade Finance Guide. 

Co-Sponsors and Partners

This session is made possible through cooperation among several local, state, and federal organizations:

We hope to see you at the event, so be sure to register today! For more information, please visit the Office of Finance and Insurance Industries.

Posted in Trade Finance | Tagged , | Comments Off on Global Connect: Arizona Trade Finance Seminar: A Must Attend Seminar to Learn How to Access Capital and Financing for Exports

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How Are Escrow Services Used In International Trade Transactions?

September 25, 2013

This post contains external links. Please review our external linking policy.

Andrew K. Sokol is General Manager of Emerging Markets at Escrow.com, an International Trade Administration Strategic Partner.

The Trade Finance Guide is a helpful guide for U.S. companies that want to learn the basics of trade finance.

The Trade Finance Guide is a helpful guide about the basics of trade finance.

About a year ago, Professor David Wyld, Robert Maurin Professor of Management at Southeastern Louisiana University, wrote an article titled, “Securing the Transaction: The Advantages of Using Online Escrow Services Versus Letters of Credit in International Trade.” In that article, Professor Wyld predicts that with the use of escrow services, “we will see a growth in exporting (and importing) activities around the globe.”

The question is…what is an escrow service and how is it used in international trade transactions?

The International Trade Administration’s Trade Finance Guide (TFG) says an escrow service is a cash-in-advance option available to exporters and importers that reduces the potential risk of fraud. It acts as a trusted third party that collects, holds and disburses funds according to exporter and importer instructions.

Here’s how it works: the importer sends the agreed purchase amount to the escrow service. After payment is verified, the exporter is instructed to ship the goods. Upon delivery, the importer has a pre-determined amount of time to inspect and accept the goods. Once accepted, the funds are released by the escrow service to the exporter. The escrow fee can either be paid in full by one party or split evenly between the exporter and the importer.

The TFG also points out that, as an exporter, any sale is a gift until payment is received. And, because getting paid in full and on time is the ultimate goal for the seller in each sale, an appropriate payment method must be chosen carefully to minimize the payment risk while also accommodating the needs of the buyer.

But, as illustrated in the TFG, different payment types present different risks to exporters than to importers. And for a variety of reasons, not all of the identified methods of payment are available, or desirable, to either exporters or importers. Here’s how the risk levels are illustrated in the TFG:

For exporters, the most secure payment method is cash in advance, followed by letters of credit, documentary collections, open account and consignment. For importers, the list is reversed in a measure of security. More information is available in the Trade Finance Guide.

The Trade Finance Guide shows how some payment methods are more secure than others, depending on whether you are an importer or an exporter.

For the first time, however, the new 2012 edition of the TFG includes escrow services for “transactions with importers who demand assurance that the goods will be sent in exchange for advance payment” and states that “escrow in international trade is a service that allows both exporter and importer to protect a transaction by placing the funds in the hands of a trusted third party until a specified set of conditions are met.”

In other words, escrow services can offer a mutually beneficial cash-in-advance method for both parties. Plus, offering escrow services as a method of payment can actually add potential importers to U.S. exporters. In many cases, deals just don’t happen due to a payment related “issue” – and one example might be that you, as the exporter, require payment in full and up-front but the importer is reluctant to send the money until they receive the goods. In this case, by offering escrow services, both parties can be satisfied, the payment issue is resolved, and the deal closes. Cross-border escrow services are offered by international banks and firms that specialize in escrow and other deposit and custody services.

Like with any new business opportunity, if you are considering the use of escrow services, do your due diligence and make sure the one you choose is licensed and accredited. You can also verify the service you choose to do business with via:

(Editor’s Note: This post focuses on one of several possible methods for receiving payments for exports. It is not intended to be an endorsement of escrow services or any organization that provides escrow services. More information is available in the Trade Finance Guide.)

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ITA and FCIB’s Commitment to International Trade Finance Continues

September 28, 2012

Yuki Fujiyama is a trade finance specialist with the Office of Financial Services Industries in the International Trade Administration. He is the author of The Trade Finance Guide: A Quick Reference for U.S. Exporters. 

Increasing access to financing for U.S. exporters and their foreign buyers is one of the top priorities of the President’s National Export Initiative (NEI). One of the private-sector organizations that is actively supporting such efforts, in partnership with the U.S. Department of Commerce, is the Finance, Credit and International Business Association (FCIB),  a globally recognized association of international credit and trade finance professionals. Established in 1919, FCIB enjoys an international reputation as a prominent business educator of credit and risk management professionals in exporting companies ranging in size from multinational to small and medium-sized enterprises (SMEs).

Attendees at the 2011 FCIB Annual Global Conference (Photo FCIB)

Attendees at the 2011 FCIB Annual Global Conference (Photo FCIB)

FCIB is currently working with the Commerce Department on the development of the third edition of The Trade Finance Guide: A Quick Reference for U.S. Exporters and its inaugural Spanish language version scheduled for release at FCIB’s 23rd Annual Global Conference on November 11-13, 2012 in Philadelphia, PA.

In 2007, FCIB assisted the Commerce Department in the development of this well-received publication, a concise and easy-to-understand guide designed to help SMEs learn quickly how to get paid from their foreign customers in the most effective manner. Subsequently, in recognition of its contributions to the development and promotion of the Guide, FCIB was awarded a Certificate of Appreciation from the Under Secretary for International Trade, the head of the Commerce Department’s International Trade Administration (ITA).  With more than 200,000 copies distributed to the public since its release in 2007, the Guide has grown to become one of the most popular export assistance resources published by ITA. The Guide is actively utilized by many international credit, banking, and trade finance professionals to help promote basic trade finance literacy among new-to-export SMEs. In support of the NEI, FCIB will continue to promote the new Guide to help advance international trade and facilitate U.S. exports.

Another recent partnership example is FCIB’s “Doing Business In” series  that focus on country-specific exporting issues. This series features experts from various nations providing expertise on some of the most vital ins and outs of profitable sales of products and services in both established and developing economies. FCIB is currently working with the Commerce Department to expand its “Doing Business In” series through the participation of selected ITA’s country desk officers and commercial service officers who work at U.S. embassies overseas.

In 2004, in partnership with Commerce Department and Michigan State University, FCIB developed, designed and launched the first course of its kind–International Credit & Risk Management (ICRM) online course. The course comes to exemplify the level of respect and cooperation between FCIB and the Commerce Department in the shared mission to promote the growth of U.S. exports and advancement of international trade. FCIB’s 13-week ICRM online course is designed to educate credit, trade finance, and international business professionals about the various intricacies of global credit and risk management.

In September 2012, FCIB launched the latest session of its ICRM online course. Now approaching its second decade of service to the global credit and business communities, more than 1,700 professionals in credit and finance have earned the ICRM program’s prestigious Certified International Credit Professional designation. A Commerce Department partnership awarded through the Market Development Cooperator Program was of critical importance in getting the ICRM online course program off the ground.

FCIB is a two-time recipient of the President’s “E” Award,  which recognizes the significant contributions that companies and organizations have made to increasing American exports.

  • In 1970, FCIB was awarded the President’s “E” Certificate for Export Service for its role in stimulating increased interest in exporting within the U.S. business community from 1967-1969.
  • In 1982, FCIB was awarded the President’s “E Star” Award in recognition of its outstanding work and continuous support of the export credit community.

Now in its 93rd year, FCIB continues to develop easily-accessible services to facilitate the role that its membership and other credit and trade finance professionals play in the growth of U.S. exports and the advancement of international trade.

FCIB’s parent, the National Association of Credit Management, is a non-profit organization that represents nearly 16,000 businesses in the United States and is one of the world’s largest credit organizations. More information on FCIB is available at www.fcibglobal.com.

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