International Networking

Credit & Political Risk

May 2, 2006

Credit Risk

New Sale

Unknown Buyer

How do you sell to this buyer?

Options

Cash in Advance Confirmed Irrevocable Letter of Credit Unconfirmed Letter of Credit Sight Draft/CAD Open Account

Open Account

Your Buyers Best Option

Credit Application Credit References Bank Reference Credit Report Request Financials Internet Credit Evaluation Source

Know Your Customer

Be Organized Start a Buyer File

Monitor Account

Update Trade Reference

Update Credit Report

Re-request Financials

Constant Contact

Monitor their payment History

Commercial Risk.

Insolvency

Bankruptcy

Protracted Default

Unforseen Risks

9/11, Terrorism, et al. Natural Disaster Fraud Dominican Republic, Venezuela, Brazil, Argentina SARS / Asian Bird Flu / Mad Cow Disease North Korea / Taiwan Gulf Region / Middle East Russia, PRC

Evaluating Country Risks

Countless Resources

US Government

Private Publications

Ask Your Banker

Political Risks

Failure to pay by government buyers Currency inconvertibility / transfer risk Hostile actions Cancellation Import License

How to Mitigate Risk

Turn the Sale Down

Cash in Advance

Factoring

Credit Insurance

What is Credit & Political Risk Insurance

A receivable insurance product that allows

an insured to transform unforeseen

commercial and/or political obstacles into

manageable risks

Benefits

Risk Management

Competitive Terms

Bank Financing

Product Offering Traditional Whole Turnover Insurance Policy

- Political only or Comprehensive Coverage

Customized “Key Account” Credit Insurance Policy

By Subsidiary or Division By Region By Product Line

Top Credit Exposures Co-Insurance or Excess of Loss

Traditional Single Buyer Credit Insurance Policy

Corporate Background

•Established in 1979, Export Insurance Agency (EIA Global) is specifically designed to assist and counsel United States companies in international and domestic insurances. We are a leader in the export credit and political risk field. Our broad base of clients range from small manufacturers to Fortune 500 companies. Export Insurance Agency acts as an intermediary between the Insured and the Insurer to obtain the best possible insurance package for our clients. The past and future success of Export Insurance Agency is directly related to our strong professional relationships within the international and domestic insurance community.

•The foreign marketplace is very volatile and unpredictable. It is essential to stay abreast of all the programs available to mitigate risks. Export Insurance Agency is a widely respected and knowledgeable source of information for our clients. We utilize our experience in the export credit and political risk industry to provide specialized programs individually tailored to our clients needs. Our home office is located in Walpole, Massachusetts and we also have offices in Dallas and Los Angeles.

EIA-Global, A Good Partner

Why is EIA-Global a good partner?• Experience• Expertise• Reputation• Integrity• Resources• National and International Offices• Service• Relationships

• Insureds• Financial Institutions• Corporations• Underwriters

Corporate Philosophy – Get The Deal Done!

Contact Us

EIA Global

40 Front Street

Walpole, MA 02081

Tel.: (508) 668-0982

Fax: (508) 668-7969

www.eia-global.com