Why do you need Export Financing?
Written by Wade Henderson on February 6th, 2010
In order for small business to sell their products or services abroad and step into the global field, they often need Export Financing.
But under what circumstances do companies or small business need Export Financing?
The initial phase can be very challenging because there is a need for investing in developing a better understanding of the market a company is going to be immersed in. These kinds of investment take both money and time.
Companies that want to sell their products internationally need Export Financing to be able for advertising and marketing of their products. They need to invest on translations of brochures and catalogues, develop websites, participate in fairs etc.
Export Financing is useful whenever a company invests in manufacturing their product or in proving a service to a market abroad. The foreign customer has the expectation that he or she will receive the product or service on time; however the exporter is more concerned about working capital, equipment and property cost.
Cash flow insufficiency also pushes business to find sources of Export Financing because some exports can take from 3 to 6 months to pay back. Small business need working capital in order to endure this long wait.
What are some possible sources of Export Financing? First of all, you should go next door to the bank you already work with. If they are unable to help you with funding, you need to start considering going to a large bank. However, these institutions might not be eager to help you either.
But not everything is lost. The U.S. Government is also a reliable source of Export Financing. Loan guarantees can be a good letters of presentation that help exporters find extra funding from big banks.
The Federal Agency for the Development of Small Business (SBA) has some Export Financing options. Here we show a few of them: Working Capital Program for Export by SBA, the International Trade Loan Program, the Normal Program of Loan Guarantees for Business, SBA Export Express, The Export-Import Bank (Ex-Im Bank), The Overseas Private Investment Corporation Overseas OPIC, the Department of Agriculture, and the National Association of State Development Agencies.
Wade Henderson – very Professional – 15 yrs in the Business Finance Field – reputation for getting the deal done. IMMFinancial.com Commercial Line of Credit Small Business Financing
This entry was posted on Saturday, February 6th, 2010 at 8:03 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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