Exporter: Mathews Company – Crystal Lake, Illinois
Medium-Term Export Credit Insurance
Jobs Supported: 65
Mathews Company, a family-owned manufacturer with 95 employees, has been building agriculture equipment for more than fifty years. It specializes in continuous flow grain dryers and multi-crop shredders and exports comprise 25% of total sales.
The company had the opportunity to sell a $328,504 "continuous flow" grain dryer in 2010 to a company in Mexico (Carlos Ramirex) but the buyer needed term-financing. Ex-Im Bank's medium-term credit insurance policy played a key role by supporting the exporter's sale. While protecting the Mathews Company from buyer nonpayment, the Ramirex company did not need to get an expensive letter of credit or pay a high down payment. Creditworthy foreign buyers, who prefer greater security and better cash utilization, often consider cash advances unacceptable and simply walk away from the deal.
"We would not have gotten the business without Ex-Im Bank. It's a 'dual benefit' as we are protected and the buyer gets credit," said Larry Antos, President.