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International Trade Financing Options and Information Resources. MEMA By Mike Lindenmuth C 3 Business Information May 21, 2014. Our Focus Today. The primary role of credit Adding value Information resources. Credit Function. Support company growth strategy
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International Trade FinancingOptions and Information Resources MEMA By Mike Lindenmuth C3 Business Information May 21, 2014
Our Focus Today • The primary role of credit • Adding value • Information resources
Credit Function • Support company growth strategy • There are only three ways to grow a business • Understand strategy and how it impacts credit • Mitigate risk • to make (something) less severe, harmful, or painful • Add value
Growth Strategies • Increase market share • Difficult in mature market • New customers or higher credit limits • New product introduction • Can be limited by core competencies • New customers or higher credit limits • Geographical expansion • New customers • Increased complexity if expansion is global
Mitigate Risk • Country Risk • Political • Economic • Social • Terrorists threats • Company Risk • Capacity • Character
Adding Value How do I finance this transaction to get the deal done? • Support company growth strategy • Mitigate risk by evaluating ways to complete the transaction
Methods of PaymentInternational Trade • Cash-in-Advance • Letters of Credit • Credit Insurance • Open Account • http://export.gov/basicguide/ • A Basic Guide to Exporting
Methods of Payment International Trade • Cash-in-Advance • Letters of Credit • Documentary Collections. • Open Account • Consignment • Export Working Capital Financing • Government-Guaranteed Export Working Capital Loan Programs • Export Credit Insurance • Export Factoring • Forfaiting • Government-Assisted Foreign Buyer Financing • Government-Backed Agricultural Export Financing
Information Resources • Country • Company • Resources that aggregate information providers • Many are free
Country Sources • Rundt’s Weekly (www.rundtsintelligence.com) • Independent source for economic, political trends & Gov’t Reg. • US Foreign and Commercial Service Reports (http://www.buyusa.gov/home/worldwide_us.html) (FREE) • Finance Credit & Int’l Bus. Country Reports (www.fcibglobal.com) • FCIB Credit and Collection Surveys (www.fcibglobal.com) • FCIB Political Risk Reports (www.fcibglobal.com) • IMF (www.imf.org) (FREE) • World Bank (http://rru.worldbank.org/DoingBusiness) (FREE)
Country Sources • Colleges and Universities (Bryant College – www.itdn.net) • Coface ( http://www.coface-usa.com/CofacePortal/redirection.jsp?pageId=pages/home/wwd/inform/Country_risk/Country%20Risk%20Assessment&site=US_en_EN ) (FREE) • Export-import Bank (www.exim.gov) (FREE) • Thomson Financial (http://research.thomsonib.com) • Piers (www.piers.com) (Customs data) • CIA (http://www.cia.gov/cia/publications/factbook/geos/ro.html) (FREE)
Company Sources • Traditional credit reporting sources • Newspaper articles • Investment research • Thomsons Financial • Aggregate financial sources • Mostly Public Companies • Create Investment reports forecast 5 years • Unbiased 3rd party opinion of a companies future • Expensive (Approx $10K) but if you have Corp lawyer – • Available thru Westlaw (http://research.thomsonib.com) • Trade publications • Press releases
The Bottom Line • No one good source • Byington in Columbia • Trans world in Chili • IGH in Baltic Countries • Sinotrust in China • Credit Repot in Mexico
SkyMinder is an aggregator for global business information reports • Access to 50 different resources globally • Access to best information provider in each country through single source • Never sole sourced • Product is owned by CRIF • U.S. presence since 2000 • No subscriptions
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Mike Lindenmuth Office: (813) 636-0981 Ext 237 Mobile: (630) 707-1843 m.lindenmuth@c3bizinfo.com