Export Financing

FINANCING EXPORT TRANSACTIONS

           Exporters naturally want to be paid as quickly as possible whereas importers would prefer to delay payment until they have received or resold the goods. Given the intense competition in export markets, the ability to provide competitive financing determines the extent to which exporters can maintain and /or increase their market shares.

            There are many financing options available and exporters can choose the most desirable options suitable for them and their overseas customers. The competitiveness of your financing depends on a number of factors including the term of the loan, the costs associated with the loan for the buyer, and risks associated with the loan (political/economic stability in buyer’s country).

PRIVATE SOURCES OF EXPORT FINANCING

  • Financing by US exporter
  • Financing by commercial Banks
  • Using discounting and banker’s acceptances
  • Using export intermediaries

PUBLIC SOURCES OF EXPORT FINANCING

  • Export-Import Bank of the United States
  • Small Business Administration
  • Department of Agriculture
  • Overseas Private Investment Corporation
  • Multilateral Development Banks
  • State and local governments

(See attached file for details)

Video: Export Financing and payment

See also the link below:

http://export.gov/build/groups/public/@eg_main/@tradeguide/documents/webcontent/eg_main_043219.pdf