ABRO Industries

"We are a privately owned company located in the Midwest that sells private label manufactured products. The majority of our clients are after-market auto retailers located in developing markets. We offer many of these clients unsecured, open account payment terms. Our most significant challenges with this business are mitigating non-payment risks and obtaining borrowing capacity against the related accounts receivable.

We had a credit insurance policy through a private insurance company, but they were unwilling to insure our largest client and could not provide the credit limits we needed for many other clients. We were contacted by another insurance broker, but they were also unable to obtain the coverage we needed. In April, 2002 we attended the Ex-Im Bank annual conference where TAG was recognized as Ex-Im Bank's Broker of the Year. Shortly thereafter we contacted TAG, and we have been working with them since that time.

Through TAG's understanding of credit, the approval process, and policy structure they were able to secure the coverage we needed for our largest account, and with terms that were satisfactory for everyone. After conversations with our lender, they had the bank named as policy loss payee, and we were able to obtain immediate borrowing capacity on this important account.

Less than a year later, Ex-Im Bank introduced a new policy type that no longer required us to insure all of our exports. TAG brokered one of the first of these new policies for us and obtained significantly larger credit limits for most of our clients than we had under our previous policy. They moved our largest account under the same policy and have been successful in continually increasing that account’s credit limit. In addition, each year we have worked together with TAG to obtain increased credit authority for us under the policy and lower premium rates.

Through their extensive network of contacts in the banking community, TAG's introduction was instrumental in helping us develop our existing banking relationship. TAG also recently packaged a pre-export working capital guarantee for us that produced immediate significant savings through a 25% discount in our insurance premium rate, while increasing our borrowing availability with our bank. In addition, we order all of our international credit agency reports through TAG, which we have found to be much easier and more cost effective than subscribing to a service ourselves.

Our relationship with TAG since 2002 has been very rewarding and mutually beneficial. We highly recommend them as an important resource for anyone involved in exporting products."

Peter Baranay
President & Chief Executive Officer, ABRO Industries