Post by Trade facilitator on Aug 20, 2019 18:27:30 GMT 1
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. Many Nigerians are now turning to export to earn a living which has been greatly rewarding and has been helping the nation's economy grow.
The amount of money needed for export is largely dependent on the product and export destination.
Export business requires sustainable funding over a period of time. As an exporter you have to make sure you get your export financing right. You also have to keep in mind that you must be able to fund your export contract.
But how does a startup raise capital to finance that line of business?
We have come up with some ideas and channels potential exporters and exporters who just started can explore to get funding for export business. The emphasis for us is to develop exporters.
Export incentives
These incentives are initiatives designed to boost the export of some certain types of products that are strategic to the economic diversification programme of government . Nigerian exporters could get access to multiple incentives.
Already , the Nigeria Export Promotion Council is administering two of these incentives. They are the Export Development Fund and Export Expansion Grant .
The Export Development Fund is to prepare, facilitate and support exporters to penetrate global markets. The incentive is available for potential exporters and exporters who just started. It aims to provide support on product development for market access in international markets.
The Export Expansion Grant is an initiative of the Federal Government meant to encourage exporters of non - oil product, including agro -commodities in order to cushion the effects of infrastructural deficiencies and reduce overall unit cost of production.
Loans
Loan is another way of funding exports. It could be loan from friends and family and there are wide ranges of loan options at commercial banks.
A logical first step is to approach your local commercial bank. One of the main factors that would determine the granting of credit by banks to any business is the level of proper bookkeeping. Accurate bookkeeping and proper business registration go a long way in accessing bank loans.
Without this, attracting the interest of banks in areas of funding might be difficult. Entrepreneurs are also advised to have bankable projects in order to enjoy credit facilities from banks. Integrity, capacity and a profitable business are also vital to benefit from banks lending.
For more on export funding process, Contact The Thy Global Investment Ltd for more guidance on how to access loans and funding for export.
The amount of money needed for export is largely dependent on the product and export destination.
Export business requires sustainable funding over a period of time. As an exporter you have to make sure you get your export financing right. You also have to keep in mind that you must be able to fund your export contract.
But how does a startup raise capital to finance that line of business?
We have come up with some ideas and channels potential exporters and exporters who just started can explore to get funding for export business. The emphasis for us is to develop exporters.
Export incentives
These incentives are initiatives designed to boost the export of some certain types of products that are strategic to the economic diversification programme of government . Nigerian exporters could get access to multiple incentives.
Already , the Nigeria Export Promotion Council is administering two of these incentives. They are the Export Development Fund and Export Expansion Grant .
The Export Development Fund is to prepare, facilitate and support exporters to penetrate global markets. The incentive is available for potential exporters and exporters who just started. It aims to provide support on product development for market access in international markets.
The Export Expansion Grant is an initiative of the Federal Government meant to encourage exporters of non - oil product, including agro -commodities in order to cushion the effects of infrastructural deficiencies and reduce overall unit cost of production.
Loans
Loan is another way of funding exports. It could be loan from friends and family and there are wide ranges of loan options at commercial banks.
A logical first step is to approach your local commercial bank. One of the main factors that would determine the granting of credit by banks to any business is the level of proper bookkeeping. Accurate bookkeeping and proper business registration go a long way in accessing bank loans.
Without this, attracting the interest of banks in areas of funding might be difficult. Entrepreneurs are also advised to have bankable projects in order to enjoy credit facilities from banks. Integrity, capacity and a profitable business are also vital to benefit from banks lending.
For more on export funding process, Contact The Thy Global Investment Ltd for more guidance on how to access loans and funding for export.
