CREATING YOUR EXPORT PLAN Section 3 Part 3 C

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Export Readiness:

Costing, Financial Forecasting and Product Pricing

 SBA

Section 3 Part 3 c

International Payment Methods

This section of the export planning process also has a lot of detailed information. It will also be broke down into parts A,B, C  etc ...

First post the worksheets covered in Section 3 Part 3 A

• Sales Forecasts—First Five Years
• Cost of Goods Sold—First Five Years
• Export Costing
• Worksheet: Marketing Expense Costs

On the last post Section 3 Part 3 B we covered worksheets

• Projected Income - First Five Years In All Markets
• Sales Forecast worksheet
• Cost of Goods Sold worksheet

On this post we are covering International Payment Methods 

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To succeed in the international marketplace, you need to offer your customers competitive payment terms and methods. As a small business exporter, your principal concern will be to ensure that your company gets paid in full and on time for each export sale.

• It does little good to make an export sale if your buyer delays payment so long that the financing cost eats up the profit.
• Foreign buyers have concerns as well, such as ...

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MORE INFORMATION

Describe the major agencies that facilitate international trade with export insurance and/or loan programs. In any international trade transaction, credit is provided by either the supplier (ex- porter), the buyer (importer), one or more financial institutions, or any combination of these.

cengage.com

What Are the Different Methods of Financing International Trade?

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Letter of Credit

a letter issued by a bank to another bank (typically in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.

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What's the difference between a bank guarantee and a letter of credit?

What Are the Different Methods of Financing International Trade?

ICANetwork

CREATING YOUR EXPORT PLAN Section 3 Part 3 B

Source Google

Export Readiness:

Costing, Financial Forecasting and Product Pricing

 SBA

Section 3 Part 3 B

Last post the worksheets covered in Section 3 Part 3 A

• Sales Forecasts—First Five Years
• Cost of Goods Sold—First Five Years
• Export Costing
• Worksheet: Marketing Expense Costs

This section of the export planning process also has a lot of detailed information. It will also be broke down into parts A,B, C  etc ...

On this post  we are covering worksheets

• Projected Income - First Five Years In All Markets
• Sales Forecast worksheet
• Cost of Goods Sold worksheet

Calculating Projected Income

You are now ready to assemble the data for your projected income statement. This statement will calculate your net profit or net loss (before income taxes) for each year.

Step 1: Fill in the sales for each year from the Sales Forecast worksheet.

Step 2: Fill in the cost of goods sold from the Cost of Goods Sold worksheet. Gross Margin for each year (sales minus cost of goods sold) will calculate automatically.

Step 3: Fill in the operating expenses specifically associated with the international marketing program for each year.

Step 4: Allocate your international division’s portion of the firm’s overall ...

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How to: set pricing in export markets

Explore options in pricing your goods and services for export

CREATING YOUR EXPORT PLAN Section 3 Part A

Source Google

Export Readiness:

Costing, Financial Forecasting and Product Pricing

 SBA

Section 3 Part 3 A

Worksheets:

• Sales Forecasts—First Five Years
• Cost of Goods Sold—First Five Years
• Export Costing
• Worksheet: Marketing Expense Costs

This section also has a lot of detailed information. It will also be broke down into parts A,B, C  etc ...

Forecasting Your Sales:

Worksheet: Sales Forecasts – First Five Years

First Five Years Forecasting sales of your product are the starting point for your financial projections. It’s key to use realistic estimates to produce a useful sales forecast. Also, remember that sales forecasts show volume only; actual cash flow will be determined by the cash cycle, which includes supplier terms, delivery dates, and payment terms and methods.

Step 1: Fill in the units-sold line for markets 1, 2 and 3 for each year.

Step 2: Fill in the sales price per unit for products sold in markets 1, 2 and 3. The following will calculate automatically:

Step 3: Total sales for each of the different markets (units sold x sales price per unit). Step 4: Sales (all markets) for each year. Step 5: Five-year total sales for each market.

Projecting the Cost of Goods Sold

Worksheet: Costs of Goods Sold – First Five years

If significant product alterations are required, your cost of goods sold internationally will differ from cost of goods sold domestically. These changes will affect your costs in terms of materials and direct and indirect labor costs. To ascertain the costs associated with the different terms of sale, SBA recommends that you consult with your export resource team. This would include:

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Economic indicators: imports and exports

Trade in goods and services forecast

Service Exports USA: A Growth Opportunity Section 3 Part 2 C

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CREATING YOUR EXPORT PLAN

Export Readiness:

Getting Your Product Export-Ready

 SBA

Section 3 Part 2 C

Worksheet > Financing Grid: Financing Your Small Business Export

Note – There are 4 different sections on types of financing and way too much to get all of the information onto one post. So, I will break it down part A, B and so on.

International Trade Loan Program

The International Trade Loan (ITL) is designed to help you enter and expand into international markets and, when adversely affected by import competition, make the investments that are necessary to better compete. The ITL offers a combination of fixed asset and working capital financing with SBA’s maximum guaranty— 90%— on the total loan amount.

Program Features: Guaranty Coverage

• Maximum Loan Amount: $5,000,000 in total financing.
• SBA can guaranty up to 90% of an ITL up to a maximum of $4.5 million, less the amount of the guaranteed portion of other SBA loans outstanding to the borrower. (When combined with any other SBA loans, the maximum guaranty for working capital cannot exceed $4 million.)
• Maturities on the working capital portion of the ITL are typically limited to seven years.
• Maturities of up to 25 years are available for facilities and equipment. • Loans with a mixed use of fixed asset and working capital financing will have a blended-average maturity.

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Guaranty Fee & Interest Rates

• Lenders may charge up to 2.25% or 2.75% above the prime rate (as published in The Wall Street Journal), depending upon the maturity of the loan. Interest rates on loans of $50,000 and less can be slightly higher.

Exporter Eligibility

• Applicants must ...

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More Information

Business USA

International Trade Loan

Business News Daily

Best Alternative Small Business Loans 2016

Service Exports USA: A Growth Opportunity Section 3 Part 2 B

Source Google

CREATING YOUR EXPORT PLAN

Export Readiness:

Getting Your Product Export-Ready

 SBA

Section 3 Part 2 B

Worksheet > Financing Grid: Financing Your Small Business Export

Note – There are 4 different sections on types of financing and way too much to get all of the information onto one post. So, I will break it down part A, B and so on.

Export Working Capital Program (EWCP)

As an exporter, you can apply for EWCP loans in advance of finalizing an export sale or contract. With an approved EWCP loan in place, you have greater flexibility in negotiating export payment terms and can be assured that adequate financing will be in place when the export order is received.

Benefits of the EWCP

• Financing for suppliers, inventory or production of export goods
• Export working capital during long payment cycles
• Financing for Standby Letters of Credit used as bid or performance bonds or down payment guarantees
• Reserves domestic working capital for the company’s sales within the United States
• Permits increased global competitiveness by allowing the exporter to extend more liberal sales terms
• Increases sales prospects in underdeveloped markets that have high capital costs for importers
• Contributes to the growth of export sales • Low fees and quick processing times

Program Features

Guaranty Coverage

• Maximum loan amount is $5,000,000
• 90% of principal and accrued interest up to 120 days
• Borrower’s low guaranty fee of ¼% of the guaranteed portion for loans with maturities of 12 months or less
• Loan maturities are generally for 12 months or less

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More Information

List of Blogs On Exporting

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SBA/Managing Your Business

An Introduction To The SBA

Service Exports USA: A Growth Opportunity Section 3 Part 2 A

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CREATING YOUR EXPORT PLAN

Export Readiness:

Getting Your Product Export-Ready

 SBA

Section 3 Part 2 A

Worksheet > Financing Grid: Financing Your Small Business Export

Note – There are 4 different sections on types of financing and way too much to get all of the information onto one post. So, I will break it down part A, B and so on. Also the recommended list of lenders for this part of the information today no longer exists. I will try to locate that information.

The U.S. Small Business Administration (SBA) provides export loan guarantee programs to help small businesses sell products or services overseas. These SBA loan programs are important because most banks in the United States do not provide domestic loans for export working capital advances on export orders, export receivables or Letters of Credit.

 It is important to note that export working capital is different from domestic commercial lending. Because of this, you need to know which lenders are proficient in export terminology and financing to support your export sales.

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Locating an SBA Lender

Typically, small businesses turn to their local banks for financing. However, not all banks are experienced at providing export financing. SBA now has an online list of all export lenders, which should make finding a lender easier.

If your bank does not have global expertise, please review the list of SBA participating lenders who can meet your exporting needs. SBA guaranteed loans are available to assist with marketing overseas and provide export working capital and long-term loans for capital asset acquisition.

About SBA Lenders

While private sector banks will typically assume limited risk regarding foreign transactions, the U.S. government can provide export financing assistance in the form of guarantees made to U.S. commercial banks. These banks, in turn, make loans available to you, as a small business exporter.

• SBA provides lenders with up to a 90% guaranty on its three export loan programs as a credit enhancement so that the lenders will make the necessary export working capital available.
• A loan can support a single transaction or multiple sales on a revolving basis.
• To qualify, you must have been in business for a full year (not necessarily in exporting) at the time of application. However, SBA may waive this requirement if your company has sufficient export trade experience.

Once you commit  ...

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For More Information

What are service exports, and why are they suddenly so important?

Service Exports: A Dynamic Export Option

US Department of State

Country Policies and Embargoes

FREE QR Codes

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Service Exports USA: A Growth Opportunity Section 3 Part 1

CREATING YOUR EXPORT PLAN

Export Readiness:

Getting Your Product Export-Ready

Section 3 Part 1

SBA

If you have decided to proceed into direct exporting, it is now time to assemble a resource library and a team to assist you in export development leading to sales.

As you proceed into direct exporting, you might consider the following professionals to provide assistance:

• An international attorney • Freight forwarder

• Banker

• An advisor from SCORE, SBDC, USEAC or a mentoring export company (See Chapter 3. Training and Counseling to help determine which type of counseling service best suits your needs.)

• For high-tech companies, optionally, an engineer from the National Institute of Standards and Technology’s Manufacturing Extension Partnership

You will need all of them to get your product ready, develop pricing, respond to inquiries, prepare quotations, negotiate sales, prepare shipping documents, and select the best form of payment

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Keys to Successful Marketing To be successful in placing your product/service in a foreign country, you must be mindful of incorporating the following important aspects into your marketing strategy:

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What are service exports, and why are they suddenly so important?

Service Exports:A Dynamic Export Option

Chapter 9: EXPORTING SERVICES

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