WASHINGTON, D.C. – October 1, 2013, ExWorks Capital, LLC, (www.ExWorksCapital.com) newly formed joint venture between Interlink Capital Strategies and RedRidge Finance Group, which offers export trade financing solutions to underserved U.S. exporters and qualified international buyers using ExIm Bank
loan guarantees and insurance, has announced that John McAdams will become its CEO.
Mr. McAdams recently departed ExIm Bank as its COO and Vice Chairman. As part of ExIm Bank’s senior management for more than 10 years serving in various management positions he guided the agency’s dramatic growth – authorizations of $10 billion in FY 2008 to $35.8 billion for fiscal year 2012. McAdams joined ExIm Bank from the Bank of America, where he held a number of executive management positions in Washington, D.C., and Chicago, including responsibilities for trade finance, corporate banking in the Midwest and New England markets, and oversight of the Asia-Pacific region. His last position at Bank of America was president of Private Bank for the mid-Atlantic region. McAdams received a Master of Business Administration degree from DePaul University, Chicago, IL, and a B.S. degree from Holy Cross College, Worcester, MA. He serves on the board of WETA, a public radio and television affiliate in Washington, D.C.
A recent study by the International Monetary Fund reveals that more than half the world’s economy is now in emerging markets. Successful businesses must export to survive and not just to developed country markets such as Western Europe, Canada and Japan. ExIm Bank, which provides a range of financing alternatives primarily for exports to emerging markets, has a portfolio of loans, guarantees and insurance in excess of $100 billion. U.S. exports totaled $2.2 trillion for the past twelve months and were growing at an annualized rate of 10.4 percent.
The growing importance of the export market and emerging markets is why ExWorks Capital was launched earlier this year. By creating a specialized financing platform to help small to medium sized enterprises (SMEs) increase exports generally, as well as go after the growing emerging marketplace, ExWorks Capital is uniquely qualified with McAdams at its helm by providing three services.
Export Trading Company
Many SME’s in the U.S. are still uncomfortable conducting business internationally and would prefer to outsource this function to an expert. ExWorks Capital can handle procurement, logistics, and structuring appropriate trade terms with foreign buyers and then buy the goods from the U.S.-based SME – ex works — like any domestic customer and take all the risk.
Working Capital Financing to U.S. Exporter
Extend revolving lines of credit or transaction specific loans to U.S. exporters comfortably working internationally to assist them in fulfilling overseas purchase orders and/or permitting them to extend more aggressive terms to their overseas
buyers. These asset-based loans will provide for advance rates of up to 75% against export purchase orders (i.e., inventory – Raw, WIP, Finished Goods) and up to 90% against accounts receivable from overseas buyers.
Medium-Term Financing to Overseas Importer
Make loans ranging from two to five years or more to overseas buyers of goods and services from a U.S. exporter. Since the ability to provide financing on capital goods or large transactions is often required to make the sale, the ability to provide this type of financing to the buyer can substantially enhance a U.S. company’s ability to compete globally.
About ExIm Bank
ExIm Bank is the official export credit agency of the United States whose mission is to assist in financing the export of U.S. goods and services. It enables U.S. companies – large and small – to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy. This federal government agency does not compete with private sector lenders but provides export financing products to financiers such as ExWorks Capital to fill gaps in trade financing by assuming credit and country risks that the private sector is unable or unwilling to accept. It also provides the necessary support to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. With more than 78 years of experience, ExIm Bank has supported more than $550 billion of U.S. exports, primarily to developing markets worldwide.
About Interlink Capital Strategies & RedRidge Finance Group
Interlink (www.interlinkdc.com) was founded in 1994 to provide financial consulting services and business development support focused on frontier and emerging markets. The Interlink team has arranged billions of dollars of structured and project financing, trade finance, business development and marketing support from government lending programs (i.e., Export Credit Agencies and Development Finance Institutions) and technical assistance for transactions in Latin America, Africa the Middle East, Southeast Asia, former Soviet Union countries and Eastern Europe. RedRidge (www.redridgefg.com) is a specialty lender and professional services company providing financing solutions and due diligence services. The company focuses on financing for growth, acquisitions, and restructuring. Its due diligence services include quality of earnings reviews, field audits, real time collateral management and reconciliations, receivable certifications and forensic style cash reviews, financial due diligence, special situation advisory and interim management, and business valuations. Additionally, the company offers debt advisory services, background screening and vetting, and supply chain management solutions.