Export assistance: Financing your international development

There is a wide range of export assistance solutions available to companies looking to expand their international activities. However, a majority of business leaders are not adequately informed about export support mechanisms. Since June 2013, the existence of a common catalog of various available aids aims to enhance the visibility of the support offered for internationalization.

These offers correspond to different stages of a company's international development. The main ones include:

• COFACE PROSPECTION INSURANCE: This supports companies in their efforts to prospect foreign markets by taking on the financial risk of their export development. They insure the company against losses incurred in case of commercial failure and support its cash flow.
• REGIONAL AID (SUBSIDIES): Individual devices provided by regions to local companies wishing to internationalize.
• TAX CREDITS: Aimed at supporting French SMEs in their prospecting efforts and contingent on the recruitment of a person dedicated to export development or a VIE (Volunteer for International Experience).
• EXPORT DEVELOPMENT LOAN: Ranging from €30,000 to €5,000,000, without guarantee, to finance international growth.
• EXPORT GUARANTEE: Provided by BPI France, it facilitates financing for export-related expenses.
  
  

COFACE PROSPECTION INSURANCE (2 types)

Eligible expenses:

• Market studies, prospecting
• Trade shows, travel
• Advertising expenses, fees and third-party fees, website
• Adaptation of products to foreign standards
• Participation in approved trade events

Two possible forms of insurance:

• First Steps Prospection Insurance (A3P) Coface

Beneficiaries: French companies from all sectors (excluding international trade)

Requirements: Minimum fiscal balance sheet, total turnover less than €50 million, and export turnover equal to or less than €200,000 or representing less than 10% of total turnover

Modalities: Maximum guaranteed budget of €30,000, coverage ratio of 65%, amortization rate of 10% (of export turnover), 4% of expenses taken into account deducted from compensation, minimum premium at contract signature: €200

• Prospection Insurance Coface

Beneficiaries: French companies from all sectors (excluding international trade) with a turnover equal to or less than €500 million

Modalities: The insurance contract includes 2 periods: a guarantee period of 1 to 4 years and an amortization period of 2 to 5 years.

REGIONAL AID (SUBSIDIES)

Eligible expenses:

• Conducting a study or audit
• Developing your offer, launching new products
• Commercial promotion, communication actions
• Export advice
• Creating an export function
• Trade shows, export prospecting missions
• International commercial investments
• Protecting against export risks
• Collective actions, network, business groupings

Requirements: The project presented must be part of a structured approach and a long-term perspective. Any request must be preceded by a letter of intent addressed to the President of the Region, specifying the nature of the project.

For a complete list of regional aids for international development, visit www.aides-entreprises.fr.

TAX CREDITS

Beneficiaries: SMEs with fewer than 250 employees and a turnover of less than €50 million or a balance sheet total of less than €43 million can benefit from an export tax credit.

Eligible expenses: The tax credit is equal to 50% of the amount of expenses, up to a ceiling of €40,000 for the 24 months following the recruitment of the person or the international volunteer in the company.

For more information, visit the Tax Credit website.

EXPORT DEVELOPMENT LOAN

Beneficiaries: French independent SMEs and/or ETIs (companies with more than three years of existence) that have already initiated an international approach and are not owned more than 25% by one or more entities that are not SMEs and/or ETIs.

Eligible expenses: Market studies, prospecting, trade shows, communication operations, recruitment and training expenses, salaries and expenses related to International Volunteers in Business (VIE), design costs, adaptation of products to foreign standards, specific or demonstration equipment with low resale value, working capital needs, creation of a subsidiary abroad.

Modalities: To submit an EDP request, you must contact Ubifrance or the Bpifrance contact person in your region.

For more information, visit www.bpifrance.fr.

EXPORT GUARANTEE

Export guarantees aim to facilitate financing for export-related expenses and investments:

• Short-term needs
• Increasing production capacity for export
• Creating or acquiring a foreign subsidiary.

Beneficiaries: French companies, created for more than three years, regardless of their activity, with a turnover not exceeding €460 million excluding taxes. These companies must be majority-owned, directly or indirectly, by nationals or companies from the European Union.

Eligible expenses: Expenses necessary for the completion of the contract, material and intangible investments, majority shareholding.

Modalities: To use this guarantee, contact Bpifrance.

For more information, visit www.bpifrance.fr.

Expandys is backed by one of the leaders in Financial Engineering: Export & Associé - Classe Export.

Export & Associé - Classe Export has been assisting companies in assembling aids, financing, and subsidies for nearly 20 years. To date, more than 1,000 companies have been advised.

Do you know exactly what assistance you are entitled to? To answer this question and receive initial feedback based on your company's situation, we invite you to fill out the following questionnaire: Online Questionnaire