Russ: This is the PKF Texas Entrepreneurs Playbook. I’m Russ Capper. This week’s guest host. Today’s topic is export financing. And I’m here with Cynthia Flake, senior vice president in Comerica Bank’s Houston middle market group. Welcome to the Playbook, Cynthia.
Cynthia: Nice to be here, Russ.
Russ: You bet. So we recently featured a series on the Houston Port and highlighted the large amount of exports taking place in Texas these days. What are some of the unique challenges export businesses have?
Cynthia: Well, Russ, if global sales are a large enough part of a company’s business, they’re going to need working capital solutions to finance foreign receivables and inventory bound for export. And also, let’s say the company is a manufacturer with production timeline of more than a couple of months. They’re typically going to be receiving incremental payments, progress payments if you will, and may be required to issue performance letters of credit during the production time. And sometimes warranty letters of credit at the final sale.
Russ: This sounds like a complex and specialized area of financial services.
Cynthia: Well, it is. Companies with export sales can really benefit from having number one, the right bank team and also their CFO or another team member on staff dedicated to supporting the relatively large amount of trade documentation that can take place.
Russ: Okay. This sounds pretty sophisticated, and I think we need to stay on this topic. Can we have you back?
Cynthia: You bet. Glad to come back.
Russ: All right. This has been another thought leader production brought to by PKF Texas Entrepreneurs Playbook. Tune in next week for another chapter.