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

June 24, 2020 / Calls for proposals, funding and incentives

E-commerce Outside the EU: New Opportunities with Export Pact Financing

How does the Export Plan for e-commerce work
What to do now? Trust Octagona's experience

This is an extremely interesting opportunity for all those Italian companies that, until now, have limited themselves to selling online within Italy or Europe and have never dared to venture beyond their borders. This initiative, which is part of the recent package to revitalize Italian exports known as the ”Pact for Exports,” is managed by SACE SIMEST and provides access to financing at an ultra-low interest rate of 0.0781% to all corporations (including those organized as “Rete Soggetto” entities).

To access the funding, companies must be established as corporations and must have filed at least two financial statements for two full fiscal years with the Business Register. The funding is granted for projects that, through the use of a Marketplace or the development of an in-house IT platform, are aimed at the distribution of goods and/or services produced in Italy or distributed under an Italian brand.

How it works

Financed at a subsidized rate for 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 may cover up to 100% of the estimated expenses, up to a maximum of 12.5% of the average revenue reported in the last two approved and filed financial statements. Maximum funding amount: €300,000.00 for the development of a proprietary platform and €200,000.00 for the use of a third-party marketplace. Minimum funding amount: €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 submit a funding application

Under penalty of inadmissibility, the application for subsidized financing must:
- Focus on a single non-EU destination country for registering a country-code top-level domain.
− Regarding the development of new e-commerce solutions through the use of a marketplace or the creation/implementation of a proprietary IT platform; both must have a country-code top-level domain registered in a non-EU country.
To be carried out by the applicant using the application form available on the SIMEST Portal, which must be duly completed;
- To be digitally signed by the legal representative of the applicant company.
To be sent to SIMEST using the SIMEST Portal

Benefits

– Low-interest loan at a rate equal to 101% of the EU reference rate
Develop your business's digital commerce
– Option to receive an initial disbursement equal to 50% of the loan amount
– Lower guarantees to be provided, also as an alternative to bank guarantees, e.g., “cash collateral” pledged

How does the Export Plan for e-commerce work

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:

– Encourage companies, especially SMEs, to implement targeted expansion plans through the support of specialized professionals
Increase the competitiveness of the Italian system in the global market

This group of economic initiatives has been christened “Pact for Export” and its focal points are:

communication;
integrated promotion;
- training/information;
e-commerce;
– trade fair system;
Finance.

The total resources available for economic recovery initiatives amount to approximately 1.4 billion Euros, of which 82 million Euros are for integrated promotion and communication activities provided for by the “Cura Italia” Decree; of which 30 million are made available through a new call for Temporary Export Managers and Digital Export Managers by MAECI and Invitalia.

What to do now? Trust Octagona's experience

From 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 international business strategy. Furthermore, our network of professionals present directly in foreign markets creates fundamental added value for the execution of the most complex initiatives in international markets.

In recent years, Octagona has supported over 750 Italian companies in their foreign investments, coordinating and managing Temporary Export Managers (TEM) and Digital Export Managers who have proven successful in supporting market access abroad.

The optimal symbiosis for increasing profitability is the harmony between digital and offline actions, 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 export. Now they can have competent professionals available 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 international clients and provide new, winning opportunities for your company. For further information and to discuss the opportunities offered, you can send an email to [email protected] or use the contact form on our website. Octagona is one of the most recognized and renowned companies in the business internationalization sector. With over 18 years of experience, we are present in more than 40 countries worldwide with direct resources and wholly-owned foreign branches.