For sellers: obtaining export financing

Export financing

Trade finance is a specific topic within the financial services industry. It refers both to loans sought by exporters (pre- or post- shipment) as well as to the extension of credit to importers, which enables them to purchase from exporters. Exporters can obtain financing from either commercial banks or governmental agencies looking to encourage SME (small to medium enterprise) export:

• Large multi-national banks are generally thought to be the most experienced in trade finance, but these banks are less interested in working with small businesses because of the smaller deal sizes and volumes accompanied by greater risk. Even SMEs with large trade deals are not attractive to larger banks due to risk and credit issues.
  
  
• Federal and local government agencies offer programs to assist exporters with their financing needs, which include the provision of loans or grants, as well as improving an qexporter's access to credit. Government guarantee and insurance programs are used by commercial banks to reduce the risk associated with loans to exporters.

Some US government sites with more information are:

U.S. Export-Import (EXIM) Bank

Small Business Administration (SBA)