Show Me The Money! Searching for Investment For Your Import Venture? Part 1 of 2

Have an idea for a new product? Got a sale, but no operating capital to import the goods? Finding the players that can help get your new import venture off the ground with financial backing and investment is a game in itself. Sourcejuice has the stats you need to get playing on a major league team.

Specialty/Boutique Investment Shops
When faced with a temporary liquidity “crunch”, the first call many companies make is to traditional factoring firms and asset-based lenders only to be told “you must first finish and ship the order to create the receivable before we can lend”. There are a number of commercial financing firms that specialize in the high-risk arena of providing “gap” financing to small manufacturing companies or importers, helping them fulfill purchase orders. Such “gaps” in the working capital necessary to pay for the materials and labor involved in producing the “finished goods” often occur because a small manufacturer has already exhausted existing bank lines and does not have other capital availability, or because it has been “swamped” with more orders than it can handle with its existing credit lines.

For a step-by-step run through of how “purchase order” financing works, check out Cameron Addair’s article in the “Share Your Expertise” series.

Traditional Bank Loans
Credit is the name of the game here and as soon as you walk into that branch (doesn’t matter which) you know the drill. If you have the credit score, open/available credit and believe in your ability, the sky is only limited by what they will loan you on a “personal” or “business” loan/line of credit. Don’t expect any special lending for importers as it is not there. A personal loan is going to run you, with good credit, starting at 14% APR. This option is risky and expensive, but with $25,000 you can import about whatever you need/cover all your expenses. Check into your options in regard to membership opportunities at your local credit union. Don’t forget to check the home equity line option with lower interest rates.

Bank of China Trade Finance
The Bank of China is marvelous, point blank. With over 90 years experience in international banking they are a vital asset for doing business in China. Their New York branch provides a plethora of investment options for the importer. Stay Tuned to part 2 of this SourceJuice thread for these options in their entirety. In the mean time here are some links to get you started.

The Bank of China

Main website

New York Branch website

410 Madison Avenue (on 48th Street)
New York, NY 10017
Tel: 212-935-3101
Fax: 212-593-1831

Services: A wide variety of products and services to facilitate your international import and export activities. Experienced professionals that know how to balance risk and pricing and provide you with the best financial services possible. Credit lines ranging from $1,000,000 to $30,000,000 can be structured to customers with at least three years’ satisfactory operating history.

Angel Investment
It is all about who you know. If you know one or many angel investors, the sky is only limited here by your investor salesmanship.

Partnerships & Consulting Practices
There are other ways to get your products imported without any capital at all. Find a company to partner with or from which to consult. You can get someone else to pay for your time and import costs. Cut a deal where, for a reduced consulting cost to them, they let you set aside some inventory for yourself. The key is to keep your eyes open for companies such as yourself for which you can market your services. You might have to get into bed with the competitor to do it, but better to get in the game than sit on the sidelines and watch.

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dylan@sourcejuice.com // Dylan Blankenship

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Comments

2 Responses to “Show Me The Money! Searching for Investment For Your Import Venture? Part 1 of 2”

Get Rich Quick? Thinking Bigg! | SourceJuice on April 11th, 2008 6:54 pm

[…] How to get your business into motion with funding: Show Me the Money! Finding Investment For Your Import Venture […]
M GNAGO ALEXIS on April 25th, 2008 6:45 am

Bonjour,

Nous sommes une société de négoce de produits tropicaux et vivriers.

Nous recherchons un appui financier pour exporter en grande quantité.

Contact: Tél (00225) 23-46-02-72
Mobile (00225) 05-82-79-84