Florida Export Finance CorporationNovember 7, 2011

Prepared for the Greater Caribbean American Chamber of CommerceThe Latin Chamber of Commerce of Broward CountyThe 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 will assist us in our exporting efforts

Advisor? Consultant? Friend?

MYTHS TRUTHS

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

Identify 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, biddingsProduct SpecificationsProduct / Country Norm compliancesPriceDelivery ( time, mode, packaging, etc)CompetitionTermsDomestic versus international policies#@!!!XX##&@@%!XZFinance and cash flowMarketing, 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

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 operationsWhen 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 24/7Fee Service. Application$250.00 check ( in Case of Eximbank also $

100.00 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 loanSales techniques and theater $ 600.00/one dayOther 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 10400 NW 33 St. suite 200 , Miami,

FL 33172 (305) 786-845-0400 (305) 786-845-0404 E: Mail roberto.fefc@gate.net WWW.fefc/biz

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

Please call us, we are always at your service!