Florida Export Finance Corporation November 7, 2011 Prepared for the Greater Caribbean American Chamber of Commerce The Latin Chamber of Commerce of Broward County The Florida House of Representatives

 Do we have to be Einstein to figure it out?

 Because our company can have more revenue !  Because we can hedge against a diminished domestic market  Because we are in Florida, and have a geographic strategic advantage  Help America by exporting  USA and Florida have key strategic organizations that w ill assist us in our exporting efforts

 Advisor?  Consultant?  Friend?

MYTHSTRUTHS  It is very difficult  We need to speak foreign languages  I will not get paid  I need to travel to dangerous places  I need a lot of capital to do it  It is simple if we apply common sense  We need English  We will get paid or collect credit insurance  No travel should be done where the State Department has issued a recommendation  Traded finance assistance from the federal and State governments is available

 1) Take a step at the time ( start with baby steps)  2) Use credit insurance or safe collection methods ( letters of credit, cash advances)  3) Have positive cash flow  4) Use somebody else’s money to finance exports  5) Use the government fine state and federal programs

 I dentify products and potential market  Approach a coach….basically YOU!!!!  Set up a marketing strategy  Set up an appropriate financial “engine”  Review the exporters “Checklist”  Prepare measures for each item of the checklist if applicable  Promote that exporters share their experiences

Quotes, biddings Product Specifications Product / Country Norm compliances Price Delivery ( time, mode, packaging, etc) Competition Terms Domestic versus international policies Finance and cash flow Marketing, trade shows

 Open account transactions  Cash advance transactions  Letters of Credit  Concept of Added value  Eximbank Insurance  Private Insurance  Political Risk insurance

 Exim Bank  Private  One customer  Many customers  Credit limit  Delegated authority  Due diligence  Deductible  Psst…pass along to the cost to the importer!!! USE A CREDIT INSURANCE BROKER

What is the fine line difference in an exporter between boosting and busting?

CHRONIC LACK OF CASH!!!!

 Are receivables invoices cash?  How about a loan to be given to us next Monday?  Is inventory cash?  Gold below our mattress ?  Prepaid expense is it cash?

 Lack of sleep  Constant sweating  Delays in delivering products  Collectors demanding payment  Past due invoices  Worried employees

 Take sleeping pills…  Borrow more money from Bank  Have your vendors increase their credit to you, collect more from customers  Take payroll of employees and gamble it a the Hard Rock?  Look for investors or at worst loan sharks  And….Also…

Break your piggy bank and gamble your family’s secure position…

PAY DIVIDENDS, salary increases and bonuses too!

 Marketing and Sales effort  Export financing credit facilities  Working capital facility ( WCG, FEFC)  Inventory financing  Credit to Buyers ( large companies)  Credit short term, medium and long term  Invoice discount facilities  Purchase order is the trigger for positive cash flow exporting

salesCustomerpurchasingwarehouse Pre export = more Inventory Post export = more accounts receivable

 Foreign Invoice + Insurance= collateral  Inventory + Guarantee = collateral  Collateral transforms to a loan to exporter  When importer pays, extinguishes the loan  And renews credit line  One year cycles

 Pre Export Financing  Post Export Financing  Combination of Pre and Post Export  Foreign Investment Financing  Any aspect of Foreign export  Related Business  TRADE FINANCE

 Export $ 100,000 cost $70,000, 150 days credit  Draw (borrow) $ 70,000 from FEFC’s guarantee line-POSITIVE CASH FLOW from financing  Invoice $ 107,000 ( assume financial expenses 5%, 2% set up fee + 1%/month))  Bank releases 90% of invoice ( 0.9x107k)  96,600 and pays for the $70,000 so now $26,600 POSITIVE CASH FLOW from operations When customer pays bank : $107,000 less advance and financing costs ($ 96,600) exporter pays invoice discount facility and receives $10,400 POSITIVE CASH FLOW from operations

 City State partner of Exim-Bank  EDN loan and PRI originator OPIC  Assist in getting into a federal or  State program ( USDA, SBA etc)  Financial Advisor  Private Insurance  Forfaiting  Other sources of funds  Assistance in getting you a bank interested in International Business,

 Not for Profit  Created By State Legislature  Quasi-government institution  Self sustaining  1.8 Billion in export assistance in 14 years ( 120MM/yr)  Unique structure  Private information of customers  Over 2,200 companies have received our assistance

 FREE SERVICE  FEE SERVICE ( small application fee and a success fee)

Free advice on demand 24/7 Fee Service. Application $ check ( in Case of Eximbank also $ fee for letter of interest) Pre export guarantee ( 3% year up to $ 500,000) Medium or long term loan ( $ 2,500/$5,000 + ½% success fee) OPIC loan or guarantee ( same policy as Medium term loan Sales techniques and theater $ /one day Other types of specialized consulting (donation )

 You will never think back the same  Strong medicine against negative cash flow disease  Become an export skipper  Meet nice bankers,  Use somebody else’s money to finance growth of your turn over ( it will have some financial costs,of course)  More competitive  Pay your bills in time  Deliver your customers in Time  You will make more money And the most important…

Companies with positive cash flow… Pay dividends …

 Roberto Rivera Vice President  NW 33 St. suite 200, Miami, FL  (305)  (305)  E: Mail 

That will steer your company out of trouble and lead it to ultimate success!!!

Please call us, we are always at your service!