Garden City event encourages new exports

You don't have to be a business behemoth to sell goods and services overseas, and Uncle Sam is ready to help.

That was message from three government agencies and four small businesses Monday at an event in Garden City aimed at boosting export activity. About 50 area business owners turned out.

Speakers acknowledged the trepidation felt by entrepreneurs just starting to sell in foreign lands because of the distance from the United States, cultural differences and concerns about not getting paid.

But they said the opportunity for rapid growth was real and many risks could be mitigated by assistance from the Export-Import Bank of the United States, federal Commerce Department and Small Business Administration, among others.

"Most companies fall into exporting by accident," said Thomas Cook, managing director of American River International Ltd., a freight forwarding and consulting business in Melville.

Cook, author of a book on international trade, said increasing U.S. exports was a key priority of President Barack Obama, who hopes to double them by the end of 2014. This National Export Initiative has led the Export-Import Bank to stage "how-to" seminars. Monday's was brought about by Rep. Carolyn McCarthy (D-Mineola).

Protection from bad buyers

The bank provides insurance against a foreign buyer's failing to pay a U.S. supplier; credit and financing for buyers, and loan guarantees for U.S. companies to fulfill export orders.

The bank reduces the greatest fear of exporting: getting stiffed by foreign customers, said Michael Richter, president of Ecological Laboratories Inc., a manufacturer of bacteria used to treat wastewater.

"The most frightening thing about exporting is getting paid . . . you don't want to put your business at risk," he said. "All of our orders are insured by the Ex-Im Bank."

Richter's company, with headquarters in Freeport and a factory in Florida, derives about 12 percent of its sales from outside the United States. He has only once filed an insurance claim to recover a foreigner's bad debt.

Love and Quiches Desserts, also in Freeport, has been exporting desserts since the early 1990s and never filed a claim. "We're very careful about who we do business with," said founder Susan Axelrod.

She and others touted the Commerce Department, which for $700 will identify probable overseas buyers and arrange face-to-face appointments with them.

Love and Quiches sells throughout the Middle East and in Russia, Japan, Mexico, Singapore and Peru. Exports account for 18 percent of the company's total sales.

"Despite the perception that people overseas don't like Americans, I can tell you everybody loves American cheesecake, brownies and chocolate cake," Axelrod said.

Bank aims to allay fears

More than 230 exporters in New York State were helped by the Export-Import Bank between 2007 and last year, including 29 on Long Island.

Bank President Fred P. Hochberg expressed frustration that New York's export growth from 2009 to 2010 lagged the national rate of 17 percent by two percentage points.

He also said the bank's programs can alleviate the concerns of novice exporters.

"I'm in the sleep business," he quipped. "I want you to be able to sleep at night and not have to worry about getting paid. . . . Leave the credit risk to us."

Export Help

Selling products and/or services overseas can be arduous. Many government agencies and business consultants provide assistance, including:

Empire State Development Corp. (New York State)

www.empire.state.ny.us/International.html

Export-Import Bank of the United States

www.exim.gov/contact/con_nyc.cfm

Long Island Import Export

Association

www.liiea.org/

Long Island U.S. Export Assistance Center (U.S. Department of Commerce)

www.buyusa.gov/longisland/

U.S. Small Business Administration

www.sba.gov/about-offices-content/2/3135