Usually, the biggest limitation to the growth of an import/export business is its ability to access sufficient working capital. Getting the right financing can be the difference between growth or possible failure.
Banks will only provide business financing to companies that can show a minimum of 2-5 years of profitable trading history. But what if your company is a startup? Or, if you can’t qualify for a business loan?
Fortunately, there is an export financing alternatives that doesn’t rely on your business trading history, but rather, it relies on the strength of your business potential and the quality of your customers credit. This type of financing can be available if you have good products (or services) and reliable customers.
Export Receivables: Export factoring
One of the biggest challenges for export companies is waiting up to 60-120 days to get paid by their international customers. Export factoring financing (a form of export finance) can provide you with an advance on your slow paying invoices, providing you with the working capital you need to run your business.
An extra benefit of export financing and trade financing tools is that they are easier to obtain that conventional bank financing. Most companies with good customers can qualify, even if they have a limited track record. Furthermore, they can be set up in a few days.
Product specialists are on hand at AR Cash Flow, phone 1300 652 158 or complete our contact form for a call back.