Leonardite Products Checks Out Brazilian Partner and Lands Sales
Leonardite Products in Williston, North Dakota, mines and processes leonardite, a natural form of humates. Once dried and sized, leonardite is useful as a fertilizer additive, or in oil drilling. Leonardite Products was approached by a Brazilian company seeking to import leonardite. To learn more about the company, Leonardite Products requested a Partial International Company Profile (ICP) from the U.S. Commercial Service in Brazil to verify that the Brazilian company was bona fide. The Partial ICP revealed that the business had been operating for several years and checked out to be established and in the right industry. At another point, Leonardite Products was approached by a different prospective Brazilian importer, and once again, Leonardite Products approached the U.S. Commercial Service in North Dakota and Brazil and requested further due diligence on both the new company and the previous company. The U.S. Commercial Service in Brazil conducted some new due diligence by contacting industry insiders, and the Commercial Specialist also reached out directly to the new inquiring importer. The U.S. Commercial Service in North Dakota did a “Rural Export Center Check” (aka REC Check) on both firms, researching the strength of their presence in 12 different databases, social media, and online resources. The original partner again checked out and showed a strong business and online presence; while the new company had several red flags that indicated caution was needed.
With the additional details from the Partial ICP, the new on-the-ground feedback from Brazil and the REC Check on the potential Brazilian companies, Leonardite Products concluded that one of the companies was a better fit for business, and confidently proceeded with business with that partner in Brazil.
“The fact that we could confirm our suspicions with the reports, and determine that one of the companies was established and currently providing services, while the other was much newer and the facts didn’t line up with information provided verbally, (It) was a huge impetus for us to carry on and spend time developing the sale to Brazil with the more established company,” said Hugh Parker, Sales Manager for Leonardite Products. “Knowing the size of the current business was very useful and gave us a feeling that it was more than capable of providing us with what we needed in country.”
As a result of the due diligence, recurring shipments valued over $100,000 have been sold to Brazil.