Possession is nine-tenths of the law. Importers of your company's goods will stretch that to the max when it comes to paying you back for what they sell in a foreign country. The time you wait for your money — whether due to shipping delays or just because it's taking a while to move product — is financing. To play this game right, you'll need credit, working capital, perhaps insurance, and solid advice on how to maximize returns.

Export financing is well-accepted around the world. Easy terms can be a competitive edge at times. But you should protect yourself.

Action Steps
The best contacts and resources to help you get it done

Get money faster via third-party financing

Most importers won't pay until the goods are received or even until sold. That can be months. Reduce the window by selling the receivables to your local lender.

I recommend: The U.S. Department of Commerce has a export finance matchmaker program that links your company to hundreds of private sources.

Consider government assistance

The U.S. Small Business Administration, the U.S. Export-Import Bank, global development agencies like the World Bank and dozens of state-level agencies also mitigate risk in order to encourage small exporters.

I recommend: The excellent, easy-to-use National Export Directory lists agencies by zip, by state or by type, such as the local SBA office.

Alternatives to borrowing

The finance world has developed ways around straight-up debt, such as factoring, where the exporter signs over receivables for a discounted sum now. It's used for short-term deals but rarely covers 100% of financing.

I recommend: Get started understanding finance options in detail at the U.S. International Trade Administration's mercifully succinct frequently asked questions page.

Understand with whom you are doing business

A good import partner should have a demonstrable track record and development agencies in the same region willing to vouch for it. The U.S. Overseas Private Investment Corporation offers risk insurance and fee-based investment services and can give your company a clear idea of which targets are worthwhile.

I recommend: See the OPIC Investor's Information Gateway for a thorough review of third-party data on nearly every country in the world by region. If you have doubts about a potential partner, contact a trade expert directly in your area, and internationally, via the U.S. Commercial Service.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Do you homework. It might take a while to find the right deal, not just the first deal or the big deal that seems too good to be true.
• •  Get a grip on why the importer wants to sell your products in the first place. Do they sell a competitor's product already? Is your product a better margin, or better terms, or both?
• •  Meet the principals behind your potential partner. They should be happy to provide bona fides of who they are in their own, domestic business world. Has the local U.S. Embassy'scommercial service heard of them?
• •  Even if you think you have a slam-dunk relationship going, shop it around before agreeing to any exclusive arrangements. Currency changes, for instance, can burn you quickly. Get escape clauses in writing.