Exporting Dietary Supplements While Building a Strong Company
Midway Labs USA of Boca Raton, Florida, was founded in 1991 by Wilton Colle, whose vision was to bring the science and technology of the dietary supplement industry to millions of consumers around the globe. The company’s products include nutricosmetics, created by women for women and designed to enhance natural beauty, and a line of supplements for first responders and others engaged in intense physical training. According to the company’s website (www.midwaylabsusa.com), since its inception, Midway Labs USA has grown to be one of the largest supplement brands in the world. One driver of this growth is exports.
Originally located in Brazil, the Midway team recognized the value that consumers place on products manufactured in the United States. Less than a year later, the company began working with manufacturing facilities across the country and began selling supplements internationally.
International sales are a great opportunity for small businesses, but if not managed carefully, they can be a threat to a company’s financial health. Distributers around the world expect to buy on “open account” credit terms – taking 30, 60, 90 or more days to pay for the products they receive. Offering open credit terms has clear advantages for the buyer and can help the seller be more competitive, but it carries risk. If an international customer buys “on time” and doesn’t pay, the U.S.-based seller may lose a significant amount of money, unless the foreign receivables generated by the transaction are insured for nonpayment.
EXIM offers a number of ways for small companies to mitigate the risk of nonpayment on international sales. Export credit insurance policies from EXIM cover foreign receivables, providing protection for small businesses against nonpayment on foreign transactions. Policies can cover an exporter’s entire portfolio of international buyers, a subset of international buyers or an individual international customer.
EXIM also helps small businesses improve cash flow with working capital loan guarantees. Working with a company’s commercial lender, EXIM loan guarantees provide access to funds to build the products and services needed to fulfill an international order.
Midway Labs continues to grow and expand, recently working with even larger manufacturing facilities. Exporting is a cornerstone of Midway’s success and offering credit terms is a key part of the company’s exporting plan. Learn more about negotiating open credit terms and request a no-cost consultation with your local EXIM representative today.
October 17, 2017