Oct 17th, 2012 by Free Help Finance
Obtaining working capital to set up an import business is the biggest obstacle to growth and success. Getting the right financing to set up an import business is crucial.
Unfortunately, banks will only engage in corporate banking services with companies that are already in business and can produce several years’ worth of positive financial statements. An import business must be profitable, and its owners must have excellent credit. Someone may have an excellent idea for a startup import business but cannot qualify for a bank business loan. Fortunately, there are excellent alternatives for financing that do not require a business history. Financial alternatives rely on the business potential for the decision making process.
A new import business can qualify for this loan if it has good products or services. In addition, the new business must be able to show a sound reliable customer base. Purchase order funding companies will finance a new import business. A new import business that can produce a signed purchase order will get capital in advance to pay suppliers. This enables a new import business to take on large orders without having to worry about current capital.
One of the biggest problems a new import business faces is getting paid in a reasonable amount of time. Customers can take as long as 60 days to pay an invoice and sometimes longer. There are many financial institutions including banks that will advance funding. Advance funding is calculated on the number and dollar amount of invoices presented by a new import business. These are just a few financing methods to help a new import business grow. Take a close look at these finance methods and pick one that works.
Once a new import business decides on the right finance method it is time to consider a business bank account. A business bank account will have either low fees or no fees at all. Find a suitable banking institution that fits the business plan. The last thing any new import business needs is recurring excessive bank fees. Make research a priority to avoid banks that charge excessive fees. The goal will be to find a bank that charges no fees or only small fees. Look for a bank in the community located near the business.
Finally, make sure the bank is local with a convenient location to the business. The bank will also be national with as many locations as possible. Make sure the bank has a strong on-line banking service.