How to access bank loan for export business.
Stories by Omodele Adigun.
As the current oil slump serves as a wake up call to diversify the economy from crude oil, many Nigerians are now turning to non-oil export to support the import substitution efforts of the Nigerian Export Promotion Council (NEPC) .
It is an open secret that from farm produce to hides to natural resources, there abound endless opportunities for Nigerians to earn foreign exchange from the export of goods and services.
But how does a startup raise capital to finance that line of business? Experts opine that a logical first step if you’re seeking to finance short-term export sales is to approach the local commercial bank that your company already does business with. “If the bank previously has extended credit to your company, it will be familiar with your financial standing, credit need, repayment record, and ability to perform. The bank may be willing to raise the overall limit on an existing working capital line of credit, to expand its scope to cover export transactions, or to approve a separate line specifically adapted to export-related transactions that involve arrangements such as discounting,” say analysts with Export.Gov, an online medium.
It is an open secret that from farm produce to hides to natural resources, there abound endless opportunities for Nigerians to earn foreign exchange from the export of goods and services.
But how does a startup raise capital to finance that line of business? Experts opine that a logical first step if you’re seeking to finance short-term export sales is to approach the local commercial bank that your company already does business with. “If the bank previously has extended credit to your company, it will be familiar with your financial standing, credit need, repayment record, and ability to perform. The bank may be willing to raise the overall limit on an existing working capital line of credit, to expand its scope to cover export transactions, or to approve a separate line specifically adapted to export-related transactions that involve arrangements such as discounting,” say analysts with Export.Gov, an online medium.
No comments:
Post a Comment