1. Collection & Financing Resources Available to AMT Members Webinar December 20, 2006 Carlos G. Mortera General Manager, Mexico

2. 2 Financing: “A Business Enabler” Mexican SME’s have limited readily available capital to invest in manufacturing equipment updates Technology, not low labor cost, makes SME’s competitive GLOBAL SALES Manufacturing Technology providers will become business enablers by providing SME’s with access to their equipment by offering extended terms Mexican SME’s must update their manufacturing processes to become global players

3. 3 Road Map 1. Build internal consensus on what you will offer to your customers: Terms & Conditions, Terms & Conditions, Risk mitigation Risk mitigation Financing Sources Financing Sources AMO has information that will help in every step of the way

4. 4 Road Map (continuation) 2. Is Financing Required? Is customer funded? Is customer funded? Is financing a competitive advantage Is financing a competitive advantage 3. What is the right financing package? For SME’s For SME’s EXIM Channels EXIM Channels Non-EXIM Channels Non-EXIM Channels

5. 5 Road Map (continuation) 4. How will it be guaranteed? Obtain credit report Obtain credit report Obtain financial statements (3 years) Obtain financial statements (3 years) What do local development agencies provide? What do local development agencies provide? 5. Writing the sales contract: Involve Mexican attorney Involve Mexican attorney

6. 6 Road Map (continuation) 6. In case of delay or default of payment. What happens? Collection Collection Repossession Repossession AMO has information that will help in every step of the way

7. 7 SAMPLE

8. 8  Work with your customer to assist in presenting his “business case” to the financial institution  Suggest collection agencies that better suits your needs  Suggest financing sources  Coordinate with the several agencies involved in extending credit to your customer to stream- line process. AMO will further guide you with your Financing needs:

9. 9 The Bottom Line  Financing is a must if you wish to compete in Mexico  Financing can be done without unreasonable risk  You must find a process that works for you and your customers AMO can help in every step of the way

10. 10 Gustavo de la Torre Rojo, COBRANZA EMPRESARIAL 011-52-33-3560 7642 e-mail: cobranzaempresa@yahoo.comcobranzaempresa@yahoo.com Bernardo Canales, CANALES ABOGADOS 011-52-81-8378 1887 e-mail: bernardo@canales.com.mxbernardo@canales.com.mx Enrique Nieto, NAFINSA 011-52-55 5325 6262 e-mail: enieto@nafin.gob.mxenieto@nafin.gob.mx Carlos Mortera, AMT MEXICO OFFICE 011-52-81- e-mail: carlosgmortera@amtcenter.org.mxcarlosgmortera@amtcenter.org.mx Mario Winterstein, AMT 703-827 5228 e-mail: mwinterstein@AMTonline.orgmwinterstein@AMTonline.org