Growing a startup is fulfilling but very challenging. Some startups are able to focus on a hyper-local level. A few startups, however, aim to reach the global scale. Either some of these global businesses are thrust into it completely, or they just outgrew their current market. In any case, startups need funding and support to grow internationally outside of their home countries.
Funding is essential at the onset, but it is even more important once the business decides it wants to grow internationally. Fortunately, there are funding resources like the ExIm Bank that can help startups do this very thing.
What is the ExIm Bank and how can it help your startup?
ExIm Bank (or Import Export Bank of the United States) is an independent federal agency that helps in the private export finance to facilitate job growth. Accordingly, ExIm Bank services include:
- Export credit insurance
- Working capital guarantees
- Guarantees of commercial loans to foreign buyers
These services helps to encourage exporters of American made products and services. Made in America and thus, good for American employment.
How the ExIm Bank Provides Funding for Small Businesses Hoping to Expand to Global Markets
There are many federal agencies in the United States. What makes ExIm Bank so special when it comes to helping startups? Their focus is to help startups think global from the very first stage of their business.
Here are a few requirements for a startup to be eligible for ExIm Bank’s help:
- Must be in business at least 1- 3 years
- Must have a DUNS #
- Must show positive net worth
In short, a startup should be in the early- to mid-stages and must not be in debt.
So, when a startup is eligible for help, how can ExIm Bank help them?
Export credit insurance
This is an insurance that extends to foreign customers. As an exporter, your accounts receivables are protected. But how is it protected?
- You are insured from non-payment.
- Through the lender you can arrange financing using insured receivables as added collateral.
- You are covered against bankruptcy and other commercial risks.
Working capital loan guarantees
It’s hard for foreign customers to import stuff from the United States. Sure, they can borrow funds in their home country, but that would be prohibitively expensive. With ExIm Bank, their loan guarantee will support US exporters to lend a hand financing their creditworthy foreign buyers.
Protection from Non-Payment and Loan Financing
Ensuring customer payment and sufficient cash flow are key issues with startups looking to grow internationally. Starting the business is hard as it is but seeking funding, staffing, and even planning of monetization makes it much more complicated. There is just no peace of mind when you are always besieged by thoughts of insolvency.
It’s just too expensive to lose out on profits (or go bankrupt) if you are not assured of customer payment. With ExIm Bank, you are insured from non-payment. Even if your customer from across the world defaulted on payment, you will always be protected from commercial or political risks.
How I Can Help Your Business Grow Internationally
Contact me today to discuss how I can help your business grow internationally, reaching new markets and new customers. I have worked with startups around the globe and have helped dozens of companies expand their global footprint. I can help with funding, market research, regulatory issues, logistics and distribution, customer acquisition and more.