The cost in setting up an import business will vary, depending on your products, budget and timeframes. We have import business start-up packages for all requirements, whether your budget is $1000 or $25,000.
Getting started in a new import business without raiding the piggy bank is first priority for most importers. The pre GFC days of easily taking equity from your home or business are gone, so what are your options then? Major banks are still lending, but you need to be conscious of what bank managers are looking for in a risk-averse lending environment.
Despite extra lending scrutiny, the basics of financing a small import business remain. Competition between banks is fierce, banks are willing to lend at competitive rates but they want to see more than a good idea, and they often want to know you are not asking for 100% of start-up costs.
Here are some tips to get a “yes” from the bank manager:
Prepare a business plan – but don’t write a novel. Just summarise your thoughts in dot point, and address the following:
- About the business and you – and the support you have
- Your products and who will buy them
- Costs, prices and profit margins including your contribution (dollars and time)
- Big picture – issues and opportunities and how you will address or take advantage of these
- Marketing plan – converting sales and growth
The NAB boasts itself as the number one small business lender in Australia and has talked a lot about how they increased lending to small businesses during the GFC, while the other major banks decreased lending. Whatever you do, shop around for a good interest rate, work out up-front, exit and ongoing fees and don’t be afraid of telling your current bank if they are not up to scratch and go elsewhere.
We can help you with your import business plan, call us on 1300 737 622