1. Presenters:
Gary K. Luxon
Comerica Bank
Troy W. Brownrigg
Brownrigg Companies LTD
Private Export Finance Solutions
Bruce Brogan
Fifth Third Bank
Martha I. Gabrielse
JPMorgan Chase
Bill Richeson November 18, 2011
PNC Bank
1:30 p.m.

2. Trade Cycle Financing
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3. Trade Cycle Financing
Export Finance Timeline
Exporter Import Shipment Importer
Sale Invoice Payment
Bill of Lading
Pre-Shipment Period Post-Shipment Period
Foreign Buyer Financing
Working Capital Financing/PO Finance Letters of Credit and Bankers Acceptance
Bid & Performance Standby L/Cs Financing (to 180 days)
Export Letters of Credit
Non-LC Solutions
Non-LC Solutions Documentary Collections and TA Financing
Ex-Im Bank Working Capital Program A/R Credit Insurance
Discounting BAs and Foreign A/Rs
Ex-Im Bank: Direct Buyer Financing
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4. Ex-Im Bank Working Capital Guarantee
Credit facility established by a commercial bank that is backed by an Ex-Im
Bank guarantee at 90% of principal and interest used to support an
exporter’s working capital needs:
 Collateralized by export-related inventory and foreign accounts receivable
 Inventory, including raw materials and WIP, advance up to 75%
 Foreign accounts receivable advance up to 90%
 Supports establishment of standby letters of credit and indirect exports
 Generally one year but can be up to three years
 Covers exporter performance risk
Note: Provides no protection to exporter against foreign buyer non-payment.
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5. Ex-Im Bank Working Capital Guarantee
Lines of Credit
 Transaction Specific
 Transaction Specific
Revolving
 Revolving
 Multiple transactions or
specifically identified ones
 May be committed for up to
three years with annual reviews
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6. Trade Transaction Timeline
Goods Goods Re-sold/Used
Produced
Extended Terms
Open Account
Cash in Advance
Good
Loan to Seller Receivable Loan to Buyer
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7. Payment Methods: 4 Methods
Best
Lowest Cash
Risk Buyer (Importer) Perspective Seller (Exporter) Perspective Flow
• Open Account • Cash In Advance
• Documentary Collections • Letter of Credit
• Letter of Credit • Documentary Collection
Highest • Cash In Advance • Open Account Worst
Risk Cash
Flow
Buyer and Seller have Reversed Priorities!

9. Trade Credit Insurance
Who Buys Trade Credit Insurance?
 Any company that sells goods on credit terms (Net 30/60/90 days) and is
exposed to the risk of non-payment.
Questions to Consider.
 Has your company considered growing it's export sales in light of the
historical low level of the US Dollar verses other currencies?
 Has one of your key customers ever defaulted on a payment or filed for
bankruptcy?
 Can your company benefit from purchase order financing?
 How well do you really know your buyers?
Types of Policies.
 Multi-Buyer and Single-Buyer. Credit risk is underwritten based on total
sales or approved limits per buyer.

10. Trade Credit Insurance
 Mitigating Risk: Insure foreign account receivables and services against
non-payment of foreign and domestic buyers. Coverage protects against
commercial(insolvency, bankruptcy, default) and political(war, political
violence, transfer) risks.
 Marketing: Know you have the security and competitive edge to take our
product global. Increase your sales by expanding into foreign markets.
 Financing: Access additional credit by using insured accounts
receivables to increase your borrowing capacity.
Costs:
 Net 60 - Multi-Buyer - $10,000,000 Sales Basis - $40,000 Min. Premium –
12 month - 90% Coinsurance - Foreign and Domestic.
Services:
 Due Diligence on your Top 20 Buyers, Discretionary Credit Limits, and
Loss Payee / Enhanced Assignment Endorsements.
Our Strategic Partners and Carriers include:
Zurich, Coface, Chubb, Chartis(AIG), Great American, EXIM Bank.

11. Documentary Letter of Credit: Use it to provide short term finance to your Buyer!
 Buyer has requested extended payment terms of 90 days from date of shipment
 Seller has countered that they will not offer such terms on Open Account basis, but
would consider if Buyer provides acceptable LC and agrees to absorb the
associated additional costs of financing
 Seller talks with their bank, to obtain indicative pricing for 3 key credit/finance
driven fees associated with this arrangement:
 Confirmation fee
 Acceptance commission
 Discount charges
 Buyer’s bank issues the LC
 Seller’s bank is the Advising and Confirming Bank
 LC is payable via a Time Draft to be drawn at 90 days from date of Ocean Bill of
LETTER OF CREDIT
Lading

12. Documentary Letter of Credit: Use it to provide short term finance to your Buyer!
 Seller ships and presents documents to their bank, requesting that the Accepted
Draft be discounted.
 Documents are examined and found to be in compliance with the LC
 Time Draft is Accepted under the LC, creating a Bankers Acceptance
 Seller’s bank discounts the Bankers Acceptance, depositing funds to the account
of the Seller
 Seller’s bank collects the full amount due under the Bankers Acceptance from the
Issuing Bank at maturity
 Illustrative Fees: $300,000 sale to Saudi Arabia at 90 days date of shipment
 Confirmation fee 1.5% per annum. LC expires 90 days from date of issuance: $1125
 Acceptance commission 2% per annum. Documents presented and Bankers Acceptance is
created10 days after shipment, leaving 80 days left until the payment due date: $1333
 Discount charges 90 day LIBOR + 2%. Bankers Acceptance is discounted with 80 days left to
maturity: $1833
LETTER OF CREDIT
 Total “financing” costs: $4291. 1.43% of the face value of the sale, or 5.72% if you multiply the 90
day cost by 4, to express it as an annualized or 360 day cost

13. Eximbank Medium Term Buyer Finance
• General overview
• What goods can be financed
• Maximum term
• Fees and charges
• Information required for pre-qualification
• Credit Issues
• Processing Time
• Examples

14. Global Access
for Small
Business
Private Export
Finance
Solutions

15. Gary K. Luxon, Director – International Trade Finance
Comerica Bank
gkluxon@comerica.com
Office: 313-222-4903
Troy W. Brownrigg, Licensed Agent – International Products
Brownrigg Companies LTD
troy.brownrigg@gmail.com
Office: 248-373-5580
Bruce Brogan, VP - Global Trade Solutions
Fifth Third Bank
bruce.brogan@53.com
Office: 248-603-0412
Martha I. Gabrielse, VP - Global Trade
JPMorgan Chase
martha.i.gabrielse@jpmchase.com
616-771-7410
Bill Richeson, SVP - Global Trade
PNC Bank
william.richeson@pnc.com
248-729-8658