Borrowing money for business expansion in USA.

[Golfman]

Ok, very briefly. I have potential new customers in the US who want to buy our products ASAP. However they will only buy when stocked and ready to go in the US. This means probably shipping £1-200k (at least) worth of products over to a new warehouse/base ready to get the ball rolling.

I will approach our Bank Manager who will probably help fund us, but I was wondering who/where else I should be looking to that I haven’t thought about that may offer us a better deal?

Thanks

[ukvoyager.info]

Are they prepared to place a purchase order stating the above conditions of sale? Without that (or another asset) raising some cash might be tricky.

[lambogenie]

Golfman said:

Ok, very briefly. I have potential new customers in the US who want to buy our products ASAP. However they will only buy when stocked and ready to go in the US. This means probably shipping £1-200k (at least) worth of products over to a new warehouse/base ready to get the ball rolling.

I will approach our Bank Manager who will probably help fund us, but I was wondering who/where else I should be looking to that I haven’t thought about that may offer us a better deal?

Thanks

look at buying an ready made shell company in the USA with existing credit lines. Several brokers offer shell companys with ready made credit lines with banks etc that would help you achieve this, it may be more advantagous to set up a US shell company with shares owned by your UK company, then use them to import the goods (and fund the stock) then sell to your customer in the US. depending on which state you are selling goods in and which state you incorporate there could be tax advantages to doing this, but you need to seek out hte advice of a proper business attorney experienced in transatlantic trade to get the optimum setup.

if the order is substantial i would suspect you would be best setting up a US company and settling your invoices in USD, then you can hedge your currency risks and get into sterling at a optimum point rather than settling your currency on the day the stock invoice is due.

[Golfman]

lambogenie said:

Golfman said:

Ok, very briefly. I have potential new customers in the US who want to buy our products ASAP. However they will only buy when stocked and ready to go in the US. This means probably shipping £1-200k (at least) worth of products over to a new warehouse/base ready to get the ball rolling.

I will approach our Bank Manager who will probably help fund us, but I was wondering who/where else I should be looking to that I haven’t thought about that may offer us a better deal?

Thanks

look at buying an ready made shell company in the USA with existing credit lines. Several brokers offer shell companys with ready made credit lines with banks etc that would help you achieve this, it may be more advantagous to set up a US shell company with shares owned by your UK company, then use them to import the goods (and fund the stock) then sell to your customer in the US. depending on which state you are selling goods in and which state you incorporate there could be tax advantages to doing this, but you need to seek out hte advice of a proper business attorney experienced in transatlantic trade to get the optimum setup.

if the order is substantial i would suspect you would be best setting up a US company and settling your invoices in USD, then you can hedge your currency risks and get into sterling at a optimum point rather than settling your currency on the day the stock invoice is due.

Thanks!