Can I obtain a business loan for international expansion?

Yes, there are several lenders within India that provide financing for businesses to expand internationally.

The loan can be used to open an office in another country, purchase a foreign company, market globally, or sell internationally.

When applying, lenders will want to see you have a well-established, successful business in India. They will review your track record, as well as inquire about your experience with international markets and any plans you have in place for expanding internationally. This plan needs to be provided in the form of a business plan, which should also indicate how you plan to use the loan, your expectations for success abroad and risk management strategies.

You'll be required to provide documentation along with your application. This may include a business plan with financial forecasts; evidence that you have received permission to operate internationally; agreements with foreign associates; and a completion of your financial statements and tax returns.

There are programs and export promotion agencies that work with companies that are considering expansion opportunities outside of India. Some of these programs and agencies may provide funding or credit guarantees that makes it easier to receive a loan and may or may not influence the conditions of the loan.

The arrangements for interest payments and terms on repayment periods may differ from your standard working capital loans. It is worth it to evaluate the proposals from lenders so that you are informed and can make the best choice for your business.

If you have an existing, thriving business market in India, and a solid but realistic international expansion plan, you have good chance of getting approved. Just make sure you have completed your application and you are ready to discuss your plans for international expansion.