Extra-EU E-commerce, new possibilities with Export Pact funding

A very interesting opportunity for all those Italian companies that until now have limited themselves to selling via the Internet on Italian or European territory and have never dared to venture across the border. This initiative, which is part of the recent Italian export revitalization package called ”Pact for Export” is managed by SACE SIMEST and defines access to an ultra-advantaged rate loan of 0.078% to all corporations (including those set up in the form of a “Subject Network”).

To be eligible for the financing, companies must be incorporated as corporations and must have filed at least two balance sheets for two full fiscal years with the Companies Registry. Funding is granted on projects that, through the use of a Market Place or the creation of a self-developed IT platform are devoted to the dissemination of goods and/or services produced in Italy or distributed under an Italian brand name.

How it works

Low-interest financing of expenses related to solutions to be implemented in two possible ways:
A) Directly implement your IT platform aimed at e-commerce;
B) Use a market place aimed at e-commerce provided by third parties.

Both solutions must have a national top-level domain registered in the target country and must relate to goods and/or services produced in Italy or distributed under an Italian brand name.
Funding can cover up to 100% of budgeted expenses, up to a maximum of 12.50% of average revenues from the last two approved and filed financial statements. Maximum amount that can be financed: € 300,000.00 for the creation of an own platform and € 200,000.00 for the use of a market place provided by third parties. Minimum amount that can be financed: € 25,000.00 in both cases.

Term of financing

4 years including 1 year of pre-amortization in which interest only is paid and 3 years of amortization for repayment of principal and interest; installments are semi-annual in arrears with constant principal.

How to apply for funding

Under penalty of ineligibility, the application for subsidized financing must:
- Concerning a single non-EU destination country in which to register a national top-level domain.
- Concerning the development of new e-commerce solutions through the use of a market place or the creation/implementation of an own IT platform; both must have a national top-level domain registered in a non-EU Pase.
- Be made by the applicant using the application form available on the SIMEST Portal, which must be duly completed;
- Be digitally signed by the legal representative of the applicant company.
- Be sent to SIMEST using the SIMEST Portal.

Benefits

- Low-rate financing equal to 10% of the EU reference rate
- Develop your enterprise's digital commerce
- Ability to obtain a first disbursement in the amount of 50% of the loan
- Less collateral to be provided, including as an alternative to a bank surety bond, e.g., “cash collateral” pledged

How the Export Plan for e-commerce works

The Export Plan to revive Made in Italy in the world has given rise to a series of economic revitalization initiatives for the purpose of:

- Incentivize companies, especially SMEs to implement targeted expansion plans through the support of specialized professionals
- Increase the competitiveness of the Italian system on the global market

This group of economic initiatives has been dubbed the “Export Pact,” and its focal points are:

- communication;
- integrated promotion;
- training/information;
- e-commerce;
- exhibition system;
- finance.

The total resources available for economic revitalization initiatives amount to about 1.4 BILLION euros of which 82 million euros for integrated promotion and communication activities provided for by the “Cura Italia” Decree-Law; including 30 million made available on a new call for proposals on Temporary Export Manager and Digital Export Manager by MAECI and Invitalia.

What to do now? Rely on Octagona's experience.

Since its origins Octagona has been committed to anticipating change, which is why it has the right know-how to support you in accessing financing and defining your business strategy abroad. In addition, our network of professionals with a direct presence in foreign markets creates fundamental added value for the execution of the most complex initiatives in international markets.

During the past few years Octagona has supported more than 750 Italian companies in ’investing abroad, coordinating and managing Temporary Export Managers (TEM) and Digital Export Managers that have proven successful in supporting access in foreign markets.

The optimal symbiosis for increasing profitability is the attunement of digital actions with offline ones, and the new Export Pact is a great opportunity for all those companies that in recent years did not have the tools or resources to be able to export. Now they can have competent professionals to support them and broaden their horizons, using the most advanced tools available, both online and offline.

The resources available can help your business reach new customers abroad and give your company new and winning opportunities. For more information and if you would like to discuss the opportunities available, you can send an email to octagona@octagona.com or via the contact form on the website. Octagona is one of the most well-known and renowned companies in the field of business internationalization. Active for over 18 years, we are present in more than 40 countries around the world with direct resources and owned foreign offices.

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