Exporting is likely to require some type of financing. Determining which financing scheme is optimal for you will depend on the amount of capital you need, for how long, and under which terms.
Understanding the different types of financing and the different methods of payment available will help your company choose the right solution that best meets your financing needs.
Until very recently, commercial banks in Lebanon had various subsidized loan products for Lebanese companies and exporters to help them expand to new markets. However, after October 2019, these loans were halted until further notice.
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The Cedar Oxygen Fund established in 2020 in collaboration with the Association of Lebanese Industrialists (ALI) and BDL has been offering trade financing products to support Lebanese companies in accessing foreign markets. The fund has three main trade finance products including “Supply Chain Finance”, “Transaction Finance” and “Receivables Purchase Finance”.
Equity financing is another alternative financing option in case you have found a good and reliable partner that can help you grow your business in overseas markets. There are various types of equity partners: some are silent and do not interfere in the operations of the business, whereas others are active and support you in management and decision-making.
The latter is a good alternative in case you have an innovative idea or promising business, and are unwilling or unable to secure a loan. This scheme is also attractive as it allows you to bring in investors to share your risk and help your business grow through their resources, expertise and networks in exchange for equity ownership.
This source is typically used by early start-ups for small funding needs to help companies in their new venture. Most popular crowdfunding websites in Lebanon are gofundme, kickstarter, and Indiegogo.
Several International organizations in Lebanon are providing in-kind and financial grants to support small businesses in Lebanon in order to expand their production and to access new markets. You can check the list of these organizations and their projects under our trade support section .
The Investment Development Authority of Lebanon (IDAL) has in place an export financial support program for exporters in the agriculture and agri-food sectors called Agri-Plus.
In addition, the Ministry of Finance provides 50% exemption on income tax from revenues generated from exports. Moreover, there are free customs duties on the import of raw material used for manufacturing activity.