Guide to Export Financing

Get money faster via third-party financing

Most importers won't pay until the goods are received or even until sold. That can be months. Reduce the window by selling the receivables to your local lender.

I recommend: The U.S. Department of Commerce has a export finance matchmaker program that links your company to hundreds of private sources.

Consider government assistance

The U.S. Small Business Administration, the U.S. Export-Import Bank, global development agencies like the World Bank and dozens of state-level agencies also mitigate risk in order to encourage small exporters.

I recommend: The excellent, easy-to-use National Export Directory lists agencies by zip, by state or by type, such as the local SBA office.

Alternatives to borrowing

The finance world has developed ways around straight-up debt, such as factoring, where the exporter signs over receivables for a discounted sum now. It's used for short-term deals but rarely covers 100% of financing.

I recommend: Get started understanding finance options in detail at the U.S. International Trade Administration's mercifully succinct frequently asked questions page.

Understand with whom you are doing business

A good import partner should have a demonstrable track record and development agencies in the same region willing to vouch for it. The U.S. Overseas Private Investment Corporation offers risk insurance and fee-based investment services and can give your company a clear idea of which targets are worthwhile.

I recommend: See the OPIC Investor's Information Gateway for a thorough review of third-party data on nearly every country in the world by region. If you have doubts about a potential partner, contact a trade expert directly in your area, and internationally, via the U.S. Commercial Service.