Posts Tagged ‘export sales financing’

The biggest obstacle any company faces on a day to day basis is financing. This is especially true for small businesses. Small businesses are constantly fighting to make their way in the world and get a foothold in the domestic market. Those small businesses that have been successful fight to get a foothold in the international market as exporters. It is even more important for these businesses to be able to secure the necessary financing needed to expand overseas.

While there are many obstacles to overcome in exporting the acquiring capital to start the expansion process is the largest one. Small businesses will not find very many investors who will put up capital to finance an overseas venture. The recent credit crisis has made investors leery of shaky ventures such as exporting, and in some cases the funds are simply not available. A successful exporting business can cost a few million dollars to create and keep running, with the initial investment being the largest and most important part. It sets out the financial foundation of the company, allows the company to get established in the country it is servicing and helps build customer relations.

However, finding an investor is not always easy because of the amount of money that has to be put into place during the initial investment phase. Most small businesses are lacking in assets that can be used as collateral for a loan. This makes it hard for most small businesses to get the funds they need to open an exporting branch. There are, however, options available to the small business owner to help them get their exporting business rolling.

One option is assistance from the Small Business Administration (SBA) that can help a small business borrow the capital they need to get their exporting business started. The SBA acts as a go between for the small business and a third party lender, allowing the business to finance up to $750,000 to be used for business purposes such as expansion. This program has been popular with entrepreneurs and is one of the many options available to businesses just starting out.

OPIC (the Overseas Private Investment Corporation) is another option for small businesses looking to expand overseas. The company acts as a facilitator for small businesses that are looking to market their products internationally and have revenue of less than $250 million. OPIC will determine if these companies are eligible for a loan and they could receive anywhere from $100,000 to $250 million to start an export business. Businesses with revenue up to $35 million can receive a loan from $100,000 to $10 million to help start their exporting division.

Both of these programs are backed by the government and recognized as reliable sources of capital for expansion. However, not every company may qualify for a loan and the repayment terms may vary. If the small business is a good fit for the program, then they may be able to realize their exporting dreams quicker than they expected. Contact us today to see how we can help facilitate your capital requirement needs in a timely and cost-effective manner.