As a small business taking advantage of the export financing options offered through the EX-IM Bank, you have unlimited ability to work with the funds obtained through the financing group you select.
These approved lenders through the EX-IM Bank offer a range of services that assist US-based companies in expanding into international markets and in eliminating many of the risks associated with doing business outside of United States.
With the use of an export financing program, a business can receive up to 90% or more of the value of the account receivables upon shipping. There is also insurance provided that will pay up to 95% of the value of the shipment, which makes lending more attractive for US banks and financial institutions.
The advantages of the export financing program and how much advance is possible will depend on the specific program the business selects from what is offered by the international trade financing group. Once the funds are obtained by the business, they can be used for a variety of different benefits.
Inventory and Supplier Payments
A top reason to use an export financing program for an advance is to restock inventory to be able to keep up with demand. Additionally, many savvy manufacturers use the funds to pay off their suppliers, often receiving deep discounts for early payment that decreases the costs of production.
Equipment and Manufacturing Systems
To increase production, companies may need to invest in more equipment, better manufacturing systems, and even additional employees. With the cash on hand from the advance, this type of business growth is possible, often without the need to consider a business loan.
Expanding Marketing Options
Getting your product into new geographic areas opens a range of possibilities. With additional cash available, it’s possible to ramp up marketing in a foreign country and take advantage of existing market gaps to establish your company ahead of the competition.
With all the benefits that accompany this type of financing, businesses of any size have opportunities and options to consider they may not have realized were possible.
