Export Finance – helping SMEs fund growth

Exporting is vital to the Irish economy and it appears that many Irish business owners have ambitious growth plans for 2017, including exporting to Europe and further afield.

While exporting can open up a whole new world of opportunities for a business, it can also bring obstacles and challenges.  Business owners have to contend with language, distance, transport, delays, time zones and currency risk.

What’s more, with over 90% of Irish exports on “open account”, there’s always  a risk of non-payment, not to mention the lengthy credit terms often demanded by overseas customers.   All these factors can be a real drain on working capital.

For any business selling to overseas customers on credit terms,  Export Finance can be a great way to bridge the cash flow gap between supplying goods or  services, and getting paid.   Export Finance simply releases cash tied up in unpaid debtors’ invoices – as soon as goods are delivered and the invoice is raised, a business can access up to 95% of the outstanding invoice value immediately.

There are many Export Finance options available –  whether you want to fund all export sales, a few customers or even just a one-off  invoice.  Some funders will manage the credit control and collections – taking away the hassle of working around language barriers and time zones. Bad debt protection is another option – removing the risk of bad debts or non-payment of invoices.  Importantly,  finance can be released in your preferred currency, mitigating any currency risk.

When it comes to choosing the right Export Finance partner, you want to make sure you identify the right lender who understands and can meet your needs.  You want  a lender with an appetite for export debt,  relevant expertise and the right product range.     At Clancy Business Finance we work with a wide range of  Export Finance funders  who can deliver funding solutions to meet your exact needs.

There are great opportunities for SMEs to expand internationally and  Export Finance can really help a company to maximise its export growth potential q6zzawz.