International Marketing Practices

The following factors should be considered when determining available funding from internal sources [183].

• Cash in bank accounts, stocks, bonds, treasury bills • Reduce receivable collection period, charge interest on credit given • Reduce stocks of raw materials or sell unused materials • Reduce production of items for stock • Resort to supplier financing, using credit, consignment, and others • Pay services such as insurance in installments • Sell fixed assets, including land and unused equipment • Divest from unprofitable investments • Defer taxes or permits, or pay in installments • Extend grace periods and reschedule installments • Defer dividend payments • Raise new funds from shareholders or bring in new shareholders

Venture Capital Venture capital is equity financing for businesses that do not have access to traditional sources of funding. Venture capitalists focus on new companies with high potential for growth and, occasionally, well-established companies with plans to expand overseas. Since they take equity in the business, they are typically more involved in the strategic management of the company. Venture capitalists are later stage investors, meaning that they invest in companies with proven revenue- generating capacity and with a proven technology. One subclass of venture capitalists is known as “angels” — wealthy individuals in search of high-return investment opportunities. Angels typically invest in industries with which they have experience or are very familiar. They often associate with other investors and set up an angel association. One good resource for start-up capital is https://gust.com, an online platform where angel investors and entrepreneurs can meet, with browsing tools for investment and funding opportunities. Bank Loans Bank loans are the traditional funding method in which the borrower returns the cash plus interest. Loans can be secured, which allow banks to ask for collateral in the case of default, or unsecured, which do not. Secured loans are most commonly used, as the goods being exported can serve as collateral. Unsecured loans will likely be unattainable for a company beginning export operations, as they are usually provided to companies with extensive trade experience [23].

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