Exporting to Another Country

Dear M & M:

I am thinking about exporting to another country. Preliminary findings are showing this to be a complicated move. Is there any help out there?

– Denny

Dear Denny:

Businesses wanting to export should be aware of the many services and technical advice available. At this time there are 6 people in Arizona that are NASBITE Certified Global Business Professionals. In Cochise County we have 3 counselors at Cochise College Small Business Development Center that are all NASBITE Certified Global Business Professionals (CGBP). The NASBITE CGBP credential confirms knowledge in international trade and assures that counselors are able topractice global business at the professional level required in today’s competitive environment.

The U.S. Commercial Service of the U.S. Department of Commerce is the lead federal agency to help promote and develop U.S. exports. Their goal is to help U.S. based businesses develop and expand their revenue streams from potential foreign markets. The U.S. Commercial Service is dedicated to assisting small-to-medium sized companies that have the capabilities to export a product and or service. Experienced staff is located in three U.S. Export Assistance Centers in Arizona at Phoenix, Scottsdale and Tucson.

The U.S. Export Assistance Center is part of an international network consisting of U.S. Export Assistance Centers across the country and 165 commercial offices in 82 countries. Domestic and international offices are directly linked through a worldwide communications and information network which offers a unique and valuable service to U.S. based companies. Another source to provide assistance is the Export-Import Bank of the U.S. (EX-IM Bank). They provide an export credit insurance policy that provides payment coverage for both commercial risks (such as buyer default) and political risks (such as war).

The Bank protects sales to a single buyer or an entire export portfolio. The insurance also enables exporters to sell on competitive “open account” terms, instead of requiring cash-in-advance or costly and complicated letters of credit. Businesses will no longer forego sales because they cannot match the credit terms offered by global competitors. Furthermore, insured foreign receivables may be used to increase an exporter’s borrowing base with a lender, thereby accelerating cash flow.  Ex-Im Bank can help U.S. companies obtain vital loans to fulfill export orders.

An Ex-Im Bank guaranteed credit line may be used to purchase finished products, pay for raw materials, supplies, labor and overhead, and even cover standby letters of credit used as performance or bid bonds. The Bank’s guarantee turns an exporter’s inventory into eligible collateral for the lender. Cochise College Small Business Development Center works with the Export-Import Bank and the U.S. Export Assistance Centers in Arizona. In conclusion, contact your local Small Business Development Center at Cochise College and they can plug you into resources and tools needed to make your exporting experience less complicated.  Source: Export.gov and Export-Import bank.

-M&M

To ask your questions: Call the Small Business Development Center(SBDC) at Cochise College (520)-515-5478 or email schmittm@cochise.edu or contact the Sierra Vista Economic Development Foundation (EDF) at 520-458-6948 or email  hollism@svedf.org .

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