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How ATC—and the U.S. Economy—Rely on EXIM Bank
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How ATC—and the U.S. Economy—Rely on EXIM Bank

Written by Wayne Ackerman, Senior Vice President of Finance and CFO

Last year Congress delayed renewal of the Export-Import Bank of the United States after its charter ran out in July 2015. The bank is an independent federal agency that fills gaps in private export finance in order to bolster U.S. job growth at no cost to American taxpayers. At the time, ATC held a press conference with U.S. Rep. Bill Pascrell Jr. (D-NJ-09), New Jersey Chamber of Commerce President Thomas Bracken, Meadowlands Regional Chamber of Commerce President Jim Kirkos, and local Bergen County business owners to outline legislation to reauthorize the the bank’s charter. (Please see our original blog post, “Pascrell, Bergen County Business Owners Fight for Reauthorization of Export-Import Bank.”)

Eventually, with significant majorities, illustrating stronger bipartisan support than had been originally voiced, legislation was signed in December 2015 by President Barak Obama to renew the bank charter with a long-term authorization that remains in effect through September 30, 2019. With the renewal, business returned to normal for integrated supply chain and distribution businesses in the United States, and re-established the mission to support American jobs and equip business with the tools necessary to compete for global sales.

Known as EXIM, the bank provides trade financing solutions—including export credit insurance, working capital guarantees, and guarantees of commercial loans to foreign buyers—to empower exporters of U.S. goods and services. Different companies rely on EXIM in different ways. ATC depends heavily on the bank to facilitate international trade.

Here’s how it works: ATC’s financial partners are U.S. banks who lend money to ATC based on their levels of eligible collateral made up of inventory and accounts receivable. When that inventory or accounts receivable is outside the United States, U.S. banks typically will not consider this “eligible collateral” and will not provide funding. That is where EXIM comes to the rescue. The EXIM Bank Supply Chain Finance Guarantee, offered to lenders, guarantees the collectability and perfection of the assets to U.S. banks, and enables them to consider it as collateral, and provide liquidity to ATC. This increases the amount of funding we have available so that we can grow the business and hire more people. It provides access to capital faster at lower cost.

How it Works


It’s a win-win for everybody. In New Jersey alone, EXIM helps more than 200 businesses like ATC to sell over $4 billion worth of goods all over the world. The cost to the government to provide these guarantees is minimal, and it has been a cash flow positive program almost since inception.  

For those who supported the EXIM charter renewal, please accept a heartfelt thank you from all of us at ATC.

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