Instability in various countries around the world can affect small businesses right here in the United States. Consider a business that exports American-made handcrafted wooden toys to Greece. There's a situation that could result in difficulty collecting from customers. A small business owner would naturally want some guarantee of receiving payment for his goods, and so might turn to export financing to protect his investment.
But most lenders wouldn't want to take too large a risk on this type of situation either. If export financing could be found, it might require export credit insurance, more solid methods of payment than normal, or other safeguards. In order to find out what types of financing deals are available, the small business owner should contact the following organizations for information and guidance.
A large bank that routinely makes these types of loans can be invaluable, especially if the company owner has already done business with that bank. Having checking and credit card accounts with such a bank can, if those accounts are in good standing, lead to credit to cover export costs and potential income. An established history of financing with that bank would help even more when it comes to the approval process. The bank may even have an international department that specializes in helping its clients with their export plans and financing. This type of financing would, of course, be different from traditional corporate credit, but small businesses will find that the approval process works in much the same way.
But if the business owner does not already do business with a particular bank, the Small Business Administration can be of assistance. They can direct interested parties to banks that offer the types of services that have helped other small business exporters. Another government entity is the Export-Import Bank of the United States. The EXIM is the official export credit agency of the country and its primary mission is to help businesses finance the export of their goods and services to international markets. Its headquarters is located in Washington, D.C. but it also has branch offices in other large cities, and it maintains a helpful online website as well.
If a business owner wants to find local help, he could contact his local Commerce Export Assistance Center. These are part of the U. S. Department of Commerce and their offices are usually located in large cities within each state. Many of the larger states have multiple locations, offering even more convenience. The mission of these export assistance centers is to help small to mid-size American export businesses grow, and they offer a wealth of information on the U. S. Government's international financing programs.
Finally, each state may have its own export promotion or export finance department that helps businesses within their borders to effectively handle export financing and other matters related to getting their goods to other countries-and their revenue back into it. Interested parties can find these organizations online or through the Small Business Administration.
Whatever route a small business owner decides to take in pursuit of export financing, there are many organizations and people who stand ready to assist in his endeavors. It can be a challenge to understand the intricacies of working with foreign importers, taxes, duties, and the rules and regulations of other countries. When money is added to the mix, it can become even more complicated. But these organizations have experience as well as the desire to help.
Corporate Credit Concepts specializes in Export Financing. For more information about Export Financing and how it might benefit your business, please CLICK HERE for a free phone consultation.