Here are 6 main reasons you may need to raise additional funding:
- Buying the raw materials to actually fulfil the export order – this seems obvious but once you have an export order, you’ll be working against a specific schedule especially if you plan to ship the goods, or they are destined for an exotic market that may need certificates of origin legalised by embassies, or technical certificates verified by testing authorities. These all take time and money to complete and one, you need to be sure that your price covers all these additional costs and two, you have the money at the given time to proceed.
- Once you’ve delivered the goods or service in the way you agreed, and hopefully, contracted with your fabulous overseas buyer there may be a gap in time between finishing the contract and actually getting paid for it.
- Tenders are notoriously difficult to quantify in terms of money needed to make an effective pitch. You may need help with the cost of developing complex propositions and to do it successfully, especially if it’s a large project.
- Funding your international marketing to take your product or service into a new market or to sustain activity in an existing market may lead to the need for additional funds.
- Any seasoned international trader will tell you about the need to visit overseas markets both in the initial research, launch and to maintain a dialogue and successful relationship with your customer.
- Finally, you may need to spend time and money to research and development (R&D) to make your product suitable for export markets and sometimes adaption for specific regions.
There are many financial products available to raise money to export. The right financial product will depend on what it’s for and the size and stage of your business. You can either borrow money or get someone to invest in your business (also known as raising equity).
In this knowledge zone, we’ll go through the different options available.