The possibilities for a company making sales to international buyers can be unlimited. Even a small company can export products into new markets and develop a niche branding opportunity that provides a strong customer base and the possibility to continue expansion.
However, there are also some unique challenges to selling internationally. One of the big issues is the delay between the negotiation of the order and the start of production and when the US based manufacturer can expect to be paid. For some companies, particularly when establishing an international market, this can be a time period of months, putting the manufacturer in a difficult position of cash flow gaps to maintain production. Using an export financing program can help offset these delays.
2 Options to Consider
Through two different programs offered to businesses through lenders approved by the EX-IM Bank, exporters can take advantage of early funds for either export credit insurance or as working capital loan guarantees.
Both of these options are designed to allow the export financing program to mitigate the risks that a US-based lender evaluates when determining to make a loan to a business. With the export credit insurance, the EX-IM Bank provides protection in the event of a non-payment or default by the buyer.
With the choice of the working capital loan guarantee program, the EX-IM Bank works directly with your lender to guarantee the loan based on your accounts receivables as well as the capital assets of the company.
Getting Help
There are various other export financing program options offered by different international trade financing services. Take the time to review options and to consider what is best for your business. As these are often short-term financial programs, maximizing the benefits to your business is important each time financing is considered.
