Finance and joint venture

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2011 Dear Sir,
I am from Mumbai want to do import/export business. I have full knowledge of the same, but the only problem is i'm lack of finance.

Since last 1&1/2 yr, i'm trying to search for a financier who can invest in my company, as per his terms and conditions such as on interest basis or on partnership or joint venture basis. I've approached several but failed.

Since I do not have the past income proof, nor i'm a tax payer neither I own a house (living in parent's house) therefore even banks do not support for the same.

I had opened company in 2008, i have IEC and Sales Tax no. and a current account.

My requirement is Rs.30-35,00,000/- for the period of 1 year for which I can return the same.

Can you please tell me what should I do to avail finance. As said, we are ready to work as per the financiers terms and condition.

We sincerely wish if someone can help me out of this situation.

Best Regards,

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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23 September 2011 Kindly start the business on credit in small lots. Against the export you can have the packing credit limit from the bank.

You can go for Joint Venture on certain terms with Indian or outsider. On what terms you want the investor to join you?

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2011 Dear sir,

Firstly thank you for the response and the interest shown.

We're comfortable in anyway the investor/financier is interested. But we look for the joint venture wherein we are ready to offer 50% out of the total profit every month.

We wait to hear from you.

THANK YOU.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 It sounds like you're in a challenging situation but there are potential avenues to explore to secure financing for your import/export business. Here are some steps and considerations you could take:

### 1. **Prepare a Detailed Business Plan:**
- Create a comprehensive business plan outlining your import/export operations, target markets, products/services, projected income and expenses, and growth strategy.
- Include financial projections showing how you plan to utilize the Rs. 30-35 lakhs and how you intend to repay it.

### 2. **Explore Different Financing Options:**

**a. Equity Investment or Joint Venture:**
- Since you're open to joint ventures, consider approaching potential investors who may be interested in partnering with you for a share in the profits.
- Be clear about what you can offer in terms of your business expertise, market knowledge, and potential growth prospects.

**b. Loans or Credit Lines:**
- While traditional banks may have stringent requirements, explore other financial institutions or non-banking financial companies (NBFCs) that might be more flexible with their lending criteria.
- Prepare a strong case and present your business plan to demonstrate your ability to repay the loan.

**c. Trade Finance Facilities:**
- Investigate trade finance options such as letters of credit (LCs), bank guarantees, or export-import financing that are specifically designed for import/export businesses.

### 3. **Build Credibility and Trust:**

- Even without past income proof or personal assets, focus on building credibility through your business reputation, track record (if any), and relationships within the industry.
- Consider getting endorsements or references from suppliers, customers, or business associates who can vouch for your capability.

### 4. **Networking and Industry Connections:**

- Attend trade shows, industry conferences, and networking events to connect with potential investors or financiers who specialize in import/export businesses.
- Utilize platforms like LinkedIn and industry forums to expand your network and reach out to potential financiers.

### 5. **Seek Professional Advice:**

- Consult with a financial advisor, accountant, or business consultant who specializes in financing for small businesses.
- They can help you structure your financial proposals, improve your financial documentation, and advise on how to approach potential investors or lenders effectively.

### 6. **Alternative Funding Sources:**

- Explore alternative funding sources such as crowdfunding platforms or angel investors who may be interested in supporting entrepreneurial ventures like yours.

### 7. **Be Transparent and Flexible:**

- Clearly communicate your needs and be open to negotiations with potential financiers regarding terms and conditions, profit-sharing arrangements, and repayment schedules.

### Conclusion:

Securing financing without a traditional income proof or personal assets can be challenging but not impossible. By preparing a solid business plan, exploring various financing options, building credibility, networking effectively, seeking professional advice, and maintaining transparency, you can increase your chances of finding a suitable financier or partner for your import/export business. Good luck!