The document summarizes information about Illinois exports from 2007-2014, providing examples of Illinois exporters. It discusses options for international sales, suppliers, partners, customers, and finding international opportunities. It also outlines stages of international deals and considerations for international payments, shipping, and systems.

2. Illinois Exports, 2007-2014
• 284 Exporters, of whom 187 were small businesses
• $39 Billion in transactions
• Top Destinations Netherlands,Kazakhstan,Mexico

3. Illinois Exporters, Local Examples
Exporter
City
Navistar
International Corp
Warrenville
JoemChem LLC
Elburn
District
Product
Total
Disbursements
Total Export
Sales Supported
14
Motor Vehicle
and Parts
Manufacturing
and Sales
$360,000,000
$0
14
Chemical
Manufacturing
and Sales
$22,242
$22,242
$2,307,996
$2,307,996
$2,768,238
$3,193,673
Miner Enterprises
Inc
Geneva
14
Transportation
Equipment
Manufacturing
and Sales
Weiler
Engineering Inc.
Elgin
14
Machinery
Manufacturing
and Sales

4. International Sales Options
• Sell to or make things for customers that come here,
online or in person
• Find an agent or distributor to recruit customers or
international partners
• License technologies or products or services to
international partners
• Provide international credit, product or service
support, or traveling project people
• Set up joint ventures
• Own local stores, sales operations, or
manufacturing plants

5. International Supplier Options
• Phone, text chat, or speaker staff from international
call centers for US conversations
• China, Korea, and other printers or manufacturers
• “Outsourced” services elements for law, medical
transcription, software development
• “E-lance” or other freelance services bids and
projects
Friedman: The World Is Flat

6. International Partners or
Customers

7. Everyone Is Online, Now

8. More Customer Finding Options
• Be visible in every directory you can find
• Buy Google and international search engine (e.g.
Baidu, in China) ads, adwords (with proper
translations, not just Google Translate)
• Advertise in trade journals/sites that have high world
market visibility (e.g. Allured Publications, Carol
Stream, for personal care products)
• Go on state, federal, or association trade missions
(e.g. Alliance of Merger and Acquisitions Germany
meeting, October 2013)

9. More Supplier Finding Options
• International network directories (e.g. Hieros
Gamos, for lawyers, or local equivalents for
lawyers.com)
• Ask your competitors who they use (e.g. China
manufacturer for Kitsune: of Foxes and Fools card
game)
• Get referrals from professional association
colleagues with international networks (e.g.
Mauritius counsel, from a Baker & McKenzie
predecessor at the ISBA)

10. We’re From The Government

11. Federal Trade Assistance
• International Trade Administration Services:
http://trade.gov/our-services/
• Small Business Administration Export Advice:
http://www.sba.gov/category/navigationstructure/exporting-importing
• US Embassy Based Trade & Commercial Officers
http://export.gov/worldwide_us/index.asp

12. Avoid Red Ink At Light Speed

13. International Payments
• Letters of Credit: Banks guarantee payment after
your or customer payment conditions met (clears
customs, passes inspection, accepted by customer,
etc..: Available from banks involved in international
trade, correspondent banks abroad
• NOT routine Visa/Mastercard: MANY fraudulent
transactions
• “Wire Transfers” to your or customer bank accounts
are routine, but KNOW YOUR CUSTOMER OR
SUPPLIER BEFORE YOU TRUST THEM WITH
YOUR ACCOUNT NUMBER

14. Private Financing Sources
• Purchase Order Financing: 75% (at most) available
from the P.O. your customer gives you, 1.5% per
month plus factor fees
• Accounts Receivable Financing: 90% availability
possible once your invoice is due, same factor fees
and percentage
• Your customer’s credit counts, not yours
Growthlaw.com deals with funds with billions of $$
available

15. Public Financing Sources (Export)
• “SBA Express”: Your bank issues, same as SBA
Express (75% of transaction available), short form to
apply
• SBA 7(a): Your bank issues, same as domestic 7(a)
in fees, rates up to 2% over prime but negotiable
Tip: Get a bank familiar with international trade, not
just local retail as your SBA lender, and beware of
random reductions in % of deal available on a/r finance

16. Public Financing II: Export Banks
• Export Loans Above SBA Limits: Export-Import
Bank of The United States:
http://www.exim.gov/
• Project Financing: The World Bank
World Bank Credit Guarantees Available
• Political Risk Insurance: OPIC
Overseas Private Investment Corporation

17. Are We There Yet?

18. Stage One: Romance
• Identify the International Customer/Provider/Partner
• Negotiate a Noncompete/Noncircumvent Agreement
• Get Or Provide A Fair Market Price Quote

19. Stage Two: Specifications
• International Sales Or Project Contracts: No UCC to
supplement terms agreed by the parties
• “Incoterms” like “FOB” (ship to or from where, who
pays freight and customs costs, other import and
export taxes)
• Deal elements different for manufacturers
representative, or merchant buyer, or local
manufacturing, or sale of equipment or services

20. Stage Three: Arguments
• Multiple Shipments Means More Chances To Mess
Up: Identify quality, quantity, currency risks and deal
with in agreements (or later, at more cost)
• International Arbitration: 7 years for Caterpillar in
Spain, since inherited contract and lack of rules in a
merger
• “Guilt Is The Gift That Keeps On Giving”:
Relationships matter more than rules or process
• Springing Foreclosures, Credit Guarantees, Risk
Insurance, Limited Commitments If No Agreement

21. How Did THAT Happen?

22. International Payment Risks
• Currency Values Change: Dollar vs. Yen or Renimbi
or Forint Different Values Different Years
• Hedge Transactions Can Limit Risks
• Repricing Of Deals Annually Or By Shipping Cycle
Can Limit Risks
• Be Aware Of Currency Markets As You Negotiate
Terms of Trade

23. International Shipping
• Fast By DHL, And Very Expensive
• Slow By Ship: 6 months to a year? But CHEAP
• 10 X Difference to ship by Container, By Pallet, or
By SKU: Aggregate Your Shipments
• Ports/Regions Can Close: Vary Your Routes And
Providers, Or Have Local Cover

24. Systems Are “Wonderful”
• SAP Initiation For Vietnam Production: Hathaway
lost Christmas
• “The Check Is In The Mail”: Kenya and Other
Corrupt Local Post Offices
• “Shipment? What Shipment?” Use experienced
freight forwarders and shippers, make sure all
paperwork for transfers is complete before you ship:
and track all movements

25. Any Questions?
William A. Price (Bill)
Attorney at Law
www.growthlaw.com
wprice@growthlaw.com
Phone/Fax 1-800-630-4780