What Every Exporter Needs from Their Bank

If your business has grown to the point where you export your services and goods to foreign markets, you might need your bank to support you in several ways. But in order to receive this support you need to define your needs and find a bank specialised for export financing. This type of financing may be needed either to cover costs of starting the company, advertising and marketing or for supporting the purchase of equipment and machines, as well as technical development. As changing banks isn’t desirable (there are better things to spend your time on), you need to look for the bank that offers high quality services for your business.

What You Need To Know About Export Financing

Some banks do not have international trade departments, or they do not want to get involved in any export financing, so you will have to do your own research to find out which bank has the best reputation and offers the best services.

Export financing is not only about loans and payments; with a good bank you should also have the services of online banking, online credit card payments, wire transfers via BACS/SWIFT or receive small business loans. This is exactly what to expect from your bank:

Good reputation – This is important as with an excellent business history, successful transactions and other past achievements your bank deserves your trust. If they have a presence in the countries that you export to this can be a real bonus.

Loans and Service Fees – It may be difficult to obtain a loan for small export businesses as most banks only offer loans for doing business with established foreign companies. The risk perceived as inherent in doing business in foreign lands is normally greater than that for businesses trading only in the UK. Your bank should offer reasonable service fees and interest rates despite your business trading location. Make sure you have collect foreign money fast and you will build your own strong reputation. If your current bank charges above the market average for this, then take a look for what else is available: the best business bank account will set you and your business up with all the financial tools necessary for a shot at success.

Letter Of Credit – Most small export businesses rely on these, as with a letter of credit it is possible to take out a loan more easily. Foreign banks may be able to provide a guarantee of payment for your customers, and this can help smooth financial transactions. Again, if your bank operates overseas, your account manager in your trading locations will understand the climate better and will be more willing and able to facilitate your business processes.

The Direct Lending Scheme – The banks have been reluctant in their dealings with businesses in the UK ever since the recession began. Now that the economy is rebounding towards exit velocity, small businesses exporting their goods and services are in need of financing more than ever. Banks, though, are not always of that opinion. If you are struggling to get financing from your bank, consider the government’s Direct Lending Scheme for exporters. The government will provide an export credit loan to an overseas buyer directly, carry out the negotiation, disburse funds under the contract for the supply of goods or services and then manage its repayment. It’s available now and is well worth investigation.

And that’s not the last option on the table. Still looking for finance? Then this article has even more tips on what you can do.

Sectors: Commercial Banking
Export Action Plan