Inspite of improving economy, finding working capital is difficult for small companies from traditional lenders. A number of federal agencies are trying to help finance foreign sales of U.S. goods and services. Insurance and working capital products are available for loans from banks and for products shipped from U.S that contains 50 percent “U.S. content”.
This formula is based on direct and indirect costs that include labor, materials, research and administration. The agencies provide for insurance and working capital loan guarantees of products shipped from the US and containing 50 percent of U.S. content. Details about content requirements are found at such agency’s website that offers advice, links and other resources.
It is important to find a commercial equipment lender if the IT equipment that is exported does not meet the domestic content threshold that is required for some federal programs. Infact, there are commercial lenders that back only IT equipment and that is the reason of their being. So, small business dealing in IT industry can find short term commercial loans .
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to