EXPORT FINANCING OVERVIEW MASS EXPORT EXPO DECEMBER 11, 2015 PATRICK F. ROSSEEL VICE PRESIDENT CITIZENS BANK

Working Capital for Exporters Some benefits of securing reliable sources of working capital. Increase sales: can you expand output easily if demand rises? Do you offer terms to foreign buyers? Match Sources : Match the source with the need. Are you tying up “domestic assets” to support your export sales? Identify Need: has manufacturing for export put a strain on liquidity and limiting total sales? Open up these sources of liquidity from your export business ! 11/10/2018

Working Capital Options for Exporters SBA Export Guarantee programs : Export Import Bank of the United States (ExIm) Guarantee Programs: Private Export Insurance : Other concerns: 11/10/2018

SBA Export Guarantee Programs Export Express Loan Program: up to $500,000.00 Loan proceeds may be used for business purposes that will enhance a company’s export development. Export Express can take the form of a term loan or a revolving line of credit. For example, you can use funds to participate in a foreign trade show, support standby letters of credit and translate product literature for use in foreign markets. You may also use funds to finance specific export orders, expand production facilities, and purchase equipment inventory or real estate. Export Working Capital Program up to $5,000,000.00 Financing for suppliers, inventory, WIP,  or production of export goods or services. Working capital to support foreign accounts receivable during long payment cycles Financing for stand-by letters of credit used as bid or performance bonds or as down payment guarantees International Trade Loan Program up to $5,000,000.00 for The borrower may use loan proceeds to acquire, construct, renovate, modernize, improve, or expand facilities and equipment to be used in the United States to produce goods or service involved in international trade and to develop and penetrate foreign markets. Funds also may be used to refinance an existing loan. Notes: No US content requirement . Fees: can vary depending on program 11/10/2018

Export Import Bank of the US On December 4, 2015, President Obama signed the Export-Import Bank Reform and Reauthorization Act of 2015. EXIM Working Capital Loan Guarantee EXIM’s Working Capital Loan Guarantee can empower exporters to unlock cash flow and take on new business abroad. With EXIM support, exporters can borrow more with the same collateral, secure performance and bid bonds necessary to win projects, and increase their global competitiveness. Global Credit Express loan: Global Credit Express is a direct working capital loan from EXIM. A primary obstacle for exporters is the inability to secure dependable financing. Global Credit Express equips U.S. businesses to access cash flow and increase their international sales. This pilot program offers direct working capital loans to creditworthy small business exporters. Businesses may be eligible for a 6- or 12-month revolving line of credit of up to $500,000. Ex-Im Bank Supply Chain Finance Guarantee: Suppliers can sell their accounts receivable to a lender to obtain early payment of invoices at a discounted rate. This helps them obtain cash quickly (often at lower rates that reflect the credit of the buyer) and increase liquidity to fulfill new orders. Exporters have the option to extend payment terms and obtain a working capital benefit without imposing undue financial hardship on their suppliers. NOTE: Generous advance rates, US Content required Fees: Vary depending on program 11/10/2018

Private Risk Insurance Foreign AR insurance: Mitigate risk of selling to foreign buyers – enables Bank eligible AR. Political Risk Insurance : Mitigate political risk Other creative idea’s: Equipment in foreign jurisdictions Sources: there are insurance agents that specialize in this coverage. You should ask your Banker, your Attorney and/or you current insurance agent. Start the dialog Results: makes foreign AR eligible for domestic borrowing base / collateral Fees: Premiums vary by risk and product 11/10/2018

Important Bank Products for Exporters Trade Finance: - Trade L/C’s to eliminated payment risk Fraud Protection: -Are your deposit accounts protected from fraud? From both domestic and foreign sources. - ACH blocks - Paper Check fraud mitigation – positive pay Cash Management Platform: - Do you use a secure online cash management platform to conduct your company’s banking business ? - Do you make or receive international payments in US or foreign currencies from a secure online platform? Foreign Exchange : -Do you have a Foreign Exchange strategy for your International sales? - Let’s explore the impact of Exchange rates in the global economy and specifically in your business 11/10/2018