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how to get international business loan

how to get international business loan

how to get international business loan

You should try to figure out at the beginning how much money you will need to start your business.If you have enough money to meet all your needs, and are willing to risk it, you will not need to look for more money. If you are short of funds, however, you will have to look for either debt or equity financing. Debt financing means borrowing money. The cheapest and easiest ways are to borrow from a friend or a relative or to borrow against the equity in your house (or some kind relative’s house). There is a large risk in this; if you lose in business, you may lose the house also. In many areas there are government agencies or private organizations (for profit or nonprofit) that offer microloans to start-up companies.

You might be able to obtain a business loan from a banker if you have a solid business plan, a good credit history, and a substantial part of your total cash needs. The bank officer might suggest that the loan be guaranteed. Credit from suppliers is common for owners of wholesale and retail businesses but not in international trade. This probably will not help you. Financing with equity means that other people become part owners of your business, and you may or may not be able to find anyone who will agree to do this. It means that instead of paying interest on a loan, you will be sharing the profit. This kind of financing is usually not available to small start-ups because it tends to be complicated and expensive. Venture capital is a form of equity financing, but I’ve never heard of a start-up import or export business that could qualify for it. These investors will take large risks, but they expect large returns in just a few years.

 

you can also read :

Before you start import export business,

about import business,

about Deemed exports.

documents aacceptance payments term,

trade credit insurance,

export credit insurance.

 

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