basic-guide-to-exporting_Latest_eg_main_086196

Success StoryManufacturingInternational SuccessPatton Electronics CompanyThe CompanyPatton Electronics is an electronics manufacturingcompany started by Bobby Patton and his youngerbrother in 1984 when they were computer sciencestudents at the University of Maryland. Theybegan by selling small, electronic widgets thatwould interface between dumb terminals andIBM mainframe computers. They now have abouta thousand products in their portfolio, and thebiggest selling are in voice-over-IP.The ChallengeAs the company grew, there was a need forsources of reliable buyers and of credit to expandproduction and to offer terms to new customers.In the IT business, some of the biggest buyers areforeign governments. For an outsider, it’s difficultto understand procurement rules and to knowwhether they are applied fairly, especially if youare not located in the country whose governmentis doing the purchasing.The SolutionPatton worked extensively with the Export-ImportBank of the United States, which has become akey component for the company in financinginternational receivables. “Domestic banks aregoing to be a little bit nervous about whether ornot they’ll be able to collect on receivables thatare coming from Sri Lanka or some other countryin the world that they’re not familiar with,” hesaid. “Ex-Im Bank provides some stability for thecommercial banks in lending to organizations likemine,” he added.Patton also uses the U.S. Department ofCommerce, notably when he’s trying to penetratenew markets. He recently opened an office inHungary, and he worked with the U.S. CommercialService office at the embassy to understand howbest to open up the market in Eastern Europe,especially understanding opportunities in theBalkans, Croatia, Bosnia, and Serbia.Collection issues are not regular occurrences,but they do happen. Patton recalls a situationwith a customer in Algeria, where the bank that180U.S. Commercial Service • A Basic Guide to Exporting