Export Financing- Sell Your Products Internationally

Posted by genedumas on September 2nd, 2013

The selling of products or services in export markets can be a profitable and a true engine for growth for your company. The service providers and traders can all benefit from adding foreign markets to their portfolio of customers. Although, selling into export markets will also deplete your cash flow. But the selling of cushion of funds in the bank, usually have no problems. The smaller and emerging firms can run into cash flow issues very quickly. In the case of exports the firms have to wait for 30, 60 or even 90 days to get paid for their goods or services. If the customers are slow paying they can really affect your company's cash flow. One of the most common solutions to this common problem is to go to the bank. If you provide them with a few years worth of audited financial statements, then the bank should be able to help you obtain business financing. However, obtaining bank financing can be very difficult for small and medium sized firms.

Some of the better alternatives are to use export factoring, a form of export finance. It allows you to accelerate the payment of your foreign export invoices, providing you with the necessary funds to meet your obligations and grow your company. With the help of export factoring, you can get your invoices paid in as little as 2 days. The invoice factors work when you sell and deliver the goods and services to your customers. It offers immediate funds to your customers. This helps in offering you the immediate funds as to operate your business activities. One of the most important requirements to qualify for factoring financing is to do business with reputable foreign customers or the multinational corporations. As if you do business with reputable clients you will have a good chance of obtaining financing.

However, one of the biggest limitations to the growth of an import or export business is its ability to obtain working capital. In several cases, getting the right financing can spell the difference between a company that will grow and be successful. The export financing deals with several issues related with import and export issues. In these cases working capital can be a significant challenge. Banks will only provide business financing to companies that can show a couple years of financial reports with profitable operations. This shows the overall credit of the person. There are several import export financing alternatives that don't rely on your business history. It relies on the strength of your business potential. Such type of financing will be available if you have good products and reliable customers.