Some business funding sources offer international business loans outside the boundaries of their home country. This financing is usually provided for one of three situations:
1) Your business is located in the same country as the international lender and you want to expand your business to overseas markets.
2) Your business is located outside of the country where the international lender resides and you need the funding to use in your home country.
3) Your business is located outside of the country where the international lender resides and you need funding to expand your business into a third country, where neither you nor the lender resides.
Business Money Source works with international funding sources who have the capability and interest to address the above situations. It is obvious that these kinds of transactions will vary in complexity and require some degree of sophistication in knowledge of business financing and legal requirements of the countries involved, on the part of the loan applicant.
You will also need a well-written, detailed and accurate business plan to give prospective lenders the complete picture of your business objectives. Your business plan must address the aforementioned cultural differences that you may experience and how you will accommodate them.
Most lenders will also require you to have some of your own money at risk as well. Most private lenders may require a down payment of at least 20%.
You may also find it beneficial to seek foreign business loans in the country that you plan to do business. The value of foreign money will of course depend upon the money market and the value of the dollar at the time when you are seeking an international business loan. International funding often involves large project loans, sometimes called Mega Loans. In some cases, doing business offshore may have more inherent risks than your domestic business operations. The apparent increased risks may be real or perceived. Much depends on the reputation and political climate of the country in which you plan to operate. Whatever the case, you must make the prospective lender feel confident that their money will be returned.
Your credit score will be more important when you are applying for an international loan. Lenders will place more weight on both your personal and business credit scores when their money is going overseas. If your business is in a strong financial position with an excellent credit rating, your personal credit score may not be scrutinized as closely. However, if your business has a questionable credit history, the lender may look for your personal credit score to be very good in order to make the deal work.
Begin the conversation with our funding sources by filling out the short International Business Loans Form now.
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