Jeremy C Bradley is a staff writer for the Finance & Investment category of Justmeans. He is a graduate of Lincoln University of Missouri where he earned a degree in biology and philosophy. He also holds an MBA. Jeremy is an expert in the business field, having worked in development and marketing at major New York City non-profit organizations. Among the highlights of Jeremy's career is sp...
Small Businesses can Export Too
Fred Hochberg, president of the Export-Import Bank of the United States, made an interesting statement recently: "We cannot grow this economy unless we grow our export sales … and we're not going to be able to grow our export sales unless small business is a part of it." As it turns out, Mr. Hochberg is right on both points. Export is the key to growing the U.S. economy - 95% of all the world's customers are outside the United States - and small businesses can now get the help they need to look beyond the U.S. border.
Small business owners are often intimidated by the thought of exporting their goods and services. Thanks to Hochberg's Export-Import Bank, small business owners can access tools and resources to minimize the risk in exporting.
Last month, the Export-Import Bank launched Global Access for Small Business, a program at providing new financing options and information to help small business understand and minimize the risk of exporting. In 2011, the bank will host 20 conferences across the States aimed at getting small business owners together.
Hochberg and the Export-Import Bank understand that exporting is essential to securing America's fragile economy. Exports can help decrease our national debt and increasing the international job market. Unfortunately, Hochberg estimates that "only 1% of small businesses are exporting today."
The Export-Import Bank will help small businesses by providing the following services:
•Working capital guarantees to help small businesses borrow money from American banks to fund exports
•Receivables insurance and letters of credit guarantees to minimize the risk of foreign buyers defaulting on their payments to American small businesses
•Loan guarantees to assist foreign buyers in getting credit to purchase from American small businesses
•Supply chain financing guarantees to help U.S. suppliers export their products to other nations.
Hochberg reassures small business owners: "No company is too small. For instance, we work with a small company in Santa Monica that sells hair-care products. They have a customer in Russia. They're owed $5,400... .We insure that receivable. We take the financial and political risk out of the equation."
So small business owners take note: you can export your products and services. Seek out resources like the Import-Export Bank and do your research. After all, as Hochberg says: "The whole thing is about creating U.S. jobs."
Photo credit: Norman B. Leventhal Map Center
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