In general, the major limitation of the growth in import / export is its ability to obtain working capital’ Several times, adequate funding could clarify the difference between a company that develops and successfully so’
Obtain working capital can be a challenge’ Banks only offer companies the financing of companies that can demonstrate a period of two years of financial reporting, operations are profitable and have good credit holders’ But what if your company is a start-up? Or, if you can not qualify for a loan?
Fortunately, there are alternatives for financing export import that are not based on the history of his company, but rather, involved in the strength of its commercial potential’ Such financing may be available if you have good products (or services) and trusted client’
Import Finance: Financing the purchase
If you import goods for sale to companies in the United States and Canada, and the need for funds to pay foreign suppliers, purchase order financing can help’ A company can fund you could advance money to pay their suppliers, allowing you to have large orders that exceed the capabilities of your capital’
The financing of exports: export factoring
One of the biggest challenges for the export companies is on hold until 60 days to pay for their foreign customers’ Export factoring financing can give an advance payment of invoices to its slowness, which provide the capital needed to operate your business’
Advantages of export finance import
The greatest advantage of financing and factoring po export financing is that they can provide the capital necessary to help businesses grow’ They can provide you with predictable cash flows, to help ensure that they meet their obligations and orders’ These two financial instruments linked to sales and very flexible’ They can easily expand to accommodate growth in sales’
An additional advantage of import and export of these financial instruments is that they are easier to obtain than traditional bank financing’ Most companies can benefit customers with good, even if they have a small balance’ Moreover, they can be implemented in a few days’