Business Loans

Expanding Your Import/Export Business in Uncertain Times

One unique are of business opportunity revolves around exporting.  While subject to fluctuations in the market worldwide, there are endless business niches in which you can thrive (and have a great deal of fun building!)  Over $1.5 trillion in goods moves through import/export businesses, with $772 billion being exported in over 150 countries.

Large companies make up only around 4-5% of the whole.  The rest are smaller companies, using many techniques to export everything from light fixtures to bird seed to the far reaches of the earth.

Export businesses often face challenges when money for expansion is needed due to bank’s fear of international market volatility - where import/export business owners often see such volatility as the key to their success.  This means that export/import businesses must find other creative means to capitalize their business during growth so that they can take advantage of opportunities quickly.

Factoring for Capital Allows Rapid Action  

Some companies can use receivables as collateral - factoring - as a ready method for expansion when opportunity presents itself.  This can, depending on the math, be a stepping stone to greatness for smaller companies who have found a “mother lode” of a high demand item at low prices, or when an overseas customer asks for a big jump in orders for their own needs.  While the money is more expensive than a bank, it is quick, and repayment can vary based on the subsequent income of the company.

Currency Fluctuations Can Warrant More Expensive Loan Products

If currency fluctuations are about to affect your business, and you can lock in terms, accessing capital quickly may provide the right answer also.  Even when the US Economy contracts, the export market expands. In fact, savvy import/export business owners can take advantage of this fact for competitive advantage.