Mexico’s thriving market: a can’t-miss export opportunity
Its $1.4 trillion economy and largely untapped workforce are coming into their prime right now in terms of buying power.
So if you’re benefitting from tariff-free access under the US-Mexico-Canada Agreement, and you’re making the most of faster shipping and lower logistics costs, you can stop reading now.
Already trading with Mexico?
But if you’re holding back because of concerns about payment security, know this:
Payment terms are your gateway to closing larger deals and building longer-term relationships. By giving buyers in Mexico extra time to pay, you make your goods more accessible and attractive.
But open-account exports introduce real risk when it comes to cashflow. What happens under challenging circumstances, like buyer insolvency, bankruptcy, or even political disruption? Will you get paid?
We’re American Trade Finance. Our Accounts Receivable Insurance (ARI) and Export Financing options can help you to confidently seize opportunities in Mexico.
Not trading with Mexico? You need to start.
Accounts Receivable Insurance is short-term credit insurance that covers up to 95% of unpaid trade receivables when you extend credit to a buyer in Mexico. You get paid even if the customer defaults, so you can offer payment terms of up to 180 days without fearing cashflow disruption.
Export Financing provides medium-term funding (over three to five years) that enables buyers in Mexico to purchase high-value equipment or machinery. Your customer gets the expedited loans and financial flexibility to make long-term commitments and you dramatically expand your reach.
You may be rejecting open-account terms in your head
You may even be thinking, “I offer quality, reliability, and proximity and that should be enough to appeal to importers in Mexico.”
But it isn’t. None of those can guarantee your business a bite of the US’s $323 billion in exports to Mexico (that was in 2023 alone, per the International Trade Administration).
You need to give buyers:
- Exceptional value and accessibility
- Financing options that meet their needs
At the same time, you need to:
- Protect against the risk of non-payment
- Secure your business’s financial stability
U.S. Trade with Mexico
DID YOU KNOW?
Did you know that you can also use insured receivables to unlock working capital for growth – say, for scaling production or fulfilling larger orders?
Here’s how:
- Banks place more trust in insured receivables, so you’re able to borrow against them at better rates.
- With a stronger credit profile, you can expand sales while reducing borrowing costs and transaction risk.
American Trade Finance’s solutions have helped US businesses to trade confidently with Mexico.
We have over $1 billion in authorizations from the Export-Import Bank of the United States.
We’re a proud recipient of the President’s “E” Award for Export Service, for substantially empowering US exporters.
Our insurance partners – Allianz, Atradius, Chubb and Coface – are some of the world’s largest and most trustworthy multinational corporations.
You may think the US is big enough to take you where you need to go.
