We joined experts from the United States Small Business Administration (SBA) and Banner Bank to discuss exporting resources, such as the Export Express Loan Program and Export Working Capital Program. We also joined experts from Export-Import Bank of the United States (EXIM Bank), GBC International Bank, and Provident Traders Inc., to discuss open account payment structures, adding value to capital equipment, and EXIM export loan guarantees.
Here are three things we learned at our export finance workshops:
1. Export financing is a key tool in international expansion.
Export financing and export credit insurance can be important tools in your arsenal. With it, you can find more attractive payment terms and mitigate risk. For instance, export credit insurance can allow your business to offer competitive credit terms to foreign buyers for up to 180 to 360 days. Plus, it can protect you against non-payments by foreign buyers due to commercial and political risks.
2. Certain programs might be better tailored to your business needs.
Export Working Capital provides vital resources for exporters to fulfill new orders, such as loan advances up to $5 million. You can use these funds to purchase finished products, raw materials, and supplies, or cover labor and overhead costs.
Export Express Program allows small businesses to borrow up to $500,000 from a local partnering bank. It is the simplest export loan program offered by the SBA, and offers flexibility and ease of use for borrowers and lenders.
3. A range of partners are here to help you.
SBA is an independent agency of the federal government dedicated to providing aid, counseling, and assistance to small businesses in order to preserve free competitive enterprise and strengthen the overall economy. Companies receiving SBA services must meet the SBA small business definition.
EXIM Bank is the official export credit agency of the United States. When private-sector lenders are unable or unwilling to provide financing, EXIM fills the gap by equipping small businesses with financing tools needed to compete in the global economy.
Finally, you can find a wide variety of lenders willing to assist. Lenders can be traditional banks or Community Development Financial Institutions (CDFI), such as Lendistry or CDC Small Business Finance.
Interested in learning more about export financing through a lender’s perspective? To learn more about export financing and the application process, tune in to these on-demand webinars:
ABOUT WORLD TRADE CENTER SAN DIEGO
World Trade Center San Diego operates as an affiliate of the San Diego Regional Economic Development Corporation. WTC San Diego works to further San Diego’s global competitiveness by building an export pipeline, attracting and retaining foreign investment, and increasing San Diego’s global profile abroad.
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