Finding an Export Funding Institution That’s Right for You

exportfunding1The international scene can be pretty brutal. It’s a beast. With competition at extreme levels on top of all the meticulous documentation, financial risks and other challenges, it can be too overwhelming for business owners. But why do many still want to export? Simple. The costs may be high and tasks aplenty but the opportunities are bigger than the two combined. One of the means by which companies get to minimize if not eliminate scrupulous documentation and threats is by virtue of what we call an export funding.

Export funding involves the use of a financing institution, who in exchange for the right to collect against export sales invoices shall provide the company with an advance of their value. In other words, cash shall be received before the invoice matures and prior to the customer sending in payment. Moreover, the burden of collection and documentation shall be shifted to them.

But even such a tried and tested method can’t be deemed bullet proof especially if companies fail to contact and partner up with the right provider or financing institution. That said here are three very important points to remember when finding an export funding institution that’s right for you and your business.

  1. Prepare ahead of time. This involves having to carefully assess your needs. At the same time, preparation includes research. Lots of it. The internet is a good place to start. Most if not all established companies have their own websites where they provide a list of their services as well as their terms and rates. Read about feedbacks and reviews from past and present customers too. That should give you a very good idea about the institution you might be working with in the future.
  2. Be accustomed to their processes. As you sell the right to collect against export invoices, you give them the right to demand payment from your customers. You allow them into your business at one point. Do their corporate values and procedures align with yours?
  3. Find out if they’re experts in your industry. Each company falls under a specific category or line of industry. It would be best to work with an export funding institution that’s not only seasoned but also has adequate experience when it comes to handling invoices of organizations like yours. Getting a provider that has experience and expertise in your line of business will make it easier for both parties to agree upon terms, discuss related topics and other similar concerns.

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