An import finance facility could aid your company finance it’s whole trade cycle right from client order through to the client paying the final invoice.
At Funding Solutions we have years of experience in structuring such facilities to aid companies in making the most of profitable opportunities. If you need an this service option please get in touch with us today on 0845 251 4040.
How can import financing help my company?
Import finance supplies solution to help your business with paying your supplier right through to your end customer pays. We often see a company that has safeguarded a huge order for a fantastic product yet they need investment to pay the supplier in China. In essence it allows you to finance your entire trade cycle.
If your company has obtained a large order or won a significant contract from a large consumer you may be asking yourself exactly how you are going to pay your supplier. This facility does simply that. On the back of the validated order from a credit worthy customer we can finance the supplier payment and provide that funding right through to when the end customer pays.
What are the criteria for an import finance facility?
An import finance facility is generally a combination of trade finance and invoice finance. The standards are not specifically onerous and include:
-Your business ought to be selling to various other companies.
-Invoices ought to be issued on credit terms and in arrears of the service or delivery being supplied.
-There should be a verified order from a credit worthwhile client.
-The goods ordered will typically be completed goods although there are some exceptions.
-Your supplier will need to accept payment through a letter of credit.
-The gross margin on the purchase will generally be in excess of 25 %.
If you wish to discuss your requirement to see if an import finance facility will certainly fulfil the necessities of your business please contact us today on 0845 251 4040.
Import finance could provide your business the following advantages:
– By utilising finance your company can capitalise on big orders that you probably would have had to walk away from.
– It enables your overseas providers to be paid by letter of credit which offers all concerned peace of mind.
– Import finance can be utilised as a flexible revolving facility and it will expand in line with your business.
– Credit insurance can be included which reduces the risk of non payment.