1. Export Financing: Alternative Options
Samantha Forbes
August 9, 2017

2. AGENDA Local vs. Int’l Transactions Financing Challenges
Financing Options

3. LOCAL vs INT’L TRANSACTIONS
International or Export require more CASH resources than local:
Exporting is a longer cycle
Local trade is done within the same geographical location/country- export is across borders
Shipping costs
Customs fees
Exchange rate fluctuations
Freight insurance
Export transaction involves greater risk!
GOAL: Get paid in full and on time
Business involved in export must offer attractive sales terms to be ahead of competitors

4. FINANCING CHALLENGES
The number one challenge for SMEs is the lack of access to capital
Funding gaps relate to firm size, risk, knowledge and flexibility
Borrowing requirements are small and usually do not appeal to financial institutions
Issues with collateralization

5. PERSONAL FINANCING Adjust the way you do business
Sell non-essential (high value) personal assets.
Cut expenses – Both business and personal.
Consider outsourcing or contract manufacturing.
Savings

6. REVENUE-BASED FINANCING
Factoring
The purchase of credit worthy accounts receivable (by a financier) in exchange for immediate cash.
Purchase Order Financing
Similar to Factoring, but goes one step further. The financier guarantees the order of a buyer by paying for the product to be manufactured, then taking their cut.

7. CREDIT CARDS
A number of companies provide credit cards designed for business use offering low to zero percent introductory rates
Interest rates after this free or introductory period is often in the double digit however, so only those entrepreneurs with the discipline to manage this for of cash should consider it.

8. EQUITY FINANCING
Investors provide the capital needed for a stake in the company.
Venture Capitalists
Angel Investor
Crowdfunding
Business Angel: someone with wealth provides capital for business, particularly start-ups. This capital injection is normally in exchange for convertible debt or ownership equity.
An online platform that aids the access of finance via small amounts donated by a large number of people
Funding provided to small firm deemed to have great potential and also to companies that wish to expand but do not have access to equity market

9. Attractive & Engaging Story
Use videos, images and photos
Network
Recognition of Lenders/Givers

10. COMPETITIONS Almost all business competitions have a cash prize
However:
Many hours of time and preparation required
A good short term financial option, not a long term financing strategy
Scotiabank Entrepreneurial Challenge; CEDA Breakpoint Series, NCB Capital Quest

11. GRANT FUNDING
Non-payable financing provided by government, nonprofits or other organizations to eligible applicants
Usually targeted to specific industries/sectors
Highly competitive and requires extensive reporting and tracking on how funds are being used
Usually available on a reimbursable basis

12. AWARD PROGRAMMES In-Kind Benefits Marketing Increase in Credibility
Mentoring and Coaching
Cost Savings

13. How about asking your customers to fund your business?
They may want to
Request a

14. E: info@jamprocorp.com
THANK YOU E: