Many U.S. businesses lose international sales because their buyers either cannot obtain financing, the interest rates are too high, or their foreign competitors have arranged loans for the buyer. Ex-Im Bank assists U.S. companies by guaranteeing financing to creditworthy international buyers, both public and private sectors, for purchases of U.S. capital goods and services. This support was critical to Perm Machine and Tool Company in closing a $1.5 million sale to Packaging Products del Peru.
With Ex-Im Bank insuring the PNC Bank loan, Packaging Products del Peru was able to purchase a complete production line to coat and print metal to manufacture cans. The Bank’s medium-term financing typically covers up to five-year repayment terms and up to $10 million. Since this transaction, Perm has added a multi-buyer policy to cover non-payment risks for future international sales.
“Financing was the clincher – the guarantee is a fantastic sales and marketing tool to compete against European firms,” said Lee Milazzo, President.