Mexico is the United States' third largest trading partner, however, the lack of financial options is often referred to as the main obstacle for U.S. companies doing business in Mexico.

Frequently asked questions (FAQs):

What government agencies are available that can assist with export financing?

There are three government agencies that can provide U.S. companies with export financing: the U.S. Trade and Development Agency (USTDA), Overseas Private Investment Corporation (OPIC), and the U.S. Export-Import Bank (EXIM). 

What is export credit insurance and do I need to purchase it?

The U.S. Export Credit Insurance market is very competitive. U.S. Ex-Im Bank is one of eight principal credit insurers available to U.S. Exporters. Export Credit Insurance is a good way to off set risk of offering terms to buyers in order to increase sales. For example, a U.S. Exporter may offer open account terms to a Mexican Buyer. If a Mexican Buyer can’t pay, the Export Credit Insurer pays up to 90% of the value of the receivables. 

What can I do to help increase my export sales?

U.S. exporters should be familiar with and consider the broad variety of financing options available in order to become as competitive as possible. U.S. exporters can diminish their sales capacity to Mexican buyers by requesting only payment either by Confirmed Letter of Credit or Cash In Advance, so a sound financing strategy is important to determine prior to market entry. 

How can I help ensure I am selling to a qualified buyer?

The U.S. Commercial Service in Mexico can conduct an International Company Profile (ICP) on key Mexican buyers, which will provide credit history and references to help U.S. Exporters assess the risk of selling to each one.

Export Financing Options:

Cash In Advance
Confirmed Letter of Credit
Documents Against Payment (D/P) & Documents Against Acceptance (D/A)
Export Finance by US Commercial Bank ($USD)
Import Finance by Mexican Bank (P$ denominated)
Lines of Credit Available from Mexican Development Banks
Open Account Terms
Open Account Terms with Export Credit Insurance

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