The first resource for export financing is your local bank. If you cannot receive the necessary credit for your export activities from your own bank, you should shop around for another bank willing to consider your loan proposal. Generally, a bank that has an international department or one that is active in small business lending will be more receptive than others to your proposal. Ask your bank for the name of a correspondent bank that provides international financing assistance. Government agencies also provide export financing through numerous programs.
How to obtain export capital – List of information sources
Financing Resources
Here are some places to start when you’re seeking export financing:
- A lender who regularly handles international transactions. For a free list, call the Export-Import Bank, in Washington, D.C., at (202) 566-4490, or check with the Small Business Administration, (202) 205-6720, or your state’s export office.
- State export finance offices offer state-backed loan guarantees, direct loans, and export credit insurance.
- The U.S. Small Business Administration (SBA) provides a variety of finance services for exporters. Among them are its international trade loan program; the export working-capital guarantee program, which provides short-term financing for individual, self-liquidating transactions; and the 7(a) business loan-guarantee program for medium-term working capital and long-term, fixed-asset financing. For further information, or for a free copy of the SBA’s new booklet on export finance, Bankable Deals, call (202) 205-6720 or your local SBA office.
- The Export-Import Bank, an independent federal agency, offers a working-capital guarantee program that covers 100 percent of the amount of a commercial loan. The agency also offers an export credit insurance program to protect exporters in case a foreign buyer defaults on a payment for a purchase. In addition, 30 state governments participate in Ex-Im Bank’s City/State Program, which helps businesses apply for loans and provides finance counseling. For more information on the Ex-Im Bank’s programs, call 1-800-424-5201.
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