What to Look for in an Export Financing Program

by | Feb 2, 2017 | Financial Services

The international marketplace holds a great deal of potential for American exporters, but it can be difficult to get an export business up and running due to the numerous risks inherent with international trade. Many new, growing, or struggling export companies find relief and flexibility through export financing programs.

Such financing programs are crucial to international trade, and exporters often wonder what type of program would work best for their organizations. It’s vital to understand what a good export-financing program entails so that when you shop for your business, you can find one that matches your needs. Here are a few indicators that you’ve found a reliable and reasonable program.

Advancement Terms

Some export finance companies are quite lenient when it comes to financing your foreign invoices. Typically, the finance company asks for the details and documentation for the transaction you wish to advance. Then, the finance company advances the bulk of the invoice to your company and holds a small percentage until the buyer pays for the invoice.

When shopping for an export finance program, look for a company that offers the highest percentage of the invoice up front. This way you get the bulk of your invoice much faster than usual. Oftentimes, the finance institution subtracts its fees from the remainder, making payment for services simple and easy.

Fee Structure

Speaking of fees – be careful while you review any financial agreements with potential lenders. You don’t want to agree to their services only to find that hidden fees make it far more expensive than you expected. Transparency is important, so look for an export finance company that is willing to walk you through a financing agreement step by step.

Flexibility

The best export financing programs offer to handle a high percentage of your invoices, and have reasonable fees and flexible service terms. When you partner with the right export financing company, your business will have the working capital necessary to grow much faster than expected. Look for an export-financing program that doesn’t require a multi-transaction or long-term commitment that can work with you with any size invoice.

Rely on an export financing company to help grow your business while providing financial flexibility and security. Reach out to the experts at Drake Finance to discuss your options and get the most out of your export business.

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