Access to finance will always be a challenge for small to medium businesses looking to expand their business overseas.
Many find it very difficult to obtain a loan from their bank for overseas investment, as Australian banks are often reluctant to accept overseas assets as security for additional loans.
And overseas banks are often reluctant to offer finance to an unknown business that is new to their market.
Having adequate funding is critical to your success, which is why you may need to look at other sources of finance early on, such as:
- a joint venture arrangement with a trusted partner in the country that you are targeting
- receiving an equity investment from a private equity or venture capital firm
- receiving an equity investment from a sophisticated individual investor or ‘angel investor’
- friends and family.
Read about how Efic may be able to assist you with overseas expansion through our overseas direct investment guarantee here.