Export Finance

Export financing enables businesses to bring their products all over the world. There are a lot of benefits to a business selling overseas, but there can also be a lot of financial risk involved as well. It is important to fully understand the risks and the government regulations before selling overseas. If done right though it can be a very profitable venture, and can sometimes bring a business more profit than selling in the United States.

Export financing is loans made for the shipping of products outside a country or region. If you have a good product that has is appealing to another country, and has great potential to sell off you could also consider a venture capitalist to help bring your business where it needs to be.

There are also some creative methods for export financing. One such method is utilizing a factoring house overseas. Basically a factoring house will purchase the exported products at a discount below invoice value. This discount is typically 2 to 7 percent below invoice. The factors will turn around and sell the products off to good companies that want the products at a higher mark-up. This ensures that the exporter receives their money up front, and it reduces the risk to a point.

The key point is to make sure your business has a plan that is clear for the potential lenders and investors about the direction your company is going so they can make an informed decision about whether to give your company the money or not.

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