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    Importer of Picture Frames

    June 2012

    Our client had won some large orders from some large customers but was left with the challenge of financing the orders. As an importer of goods they needed to pay the manufacturer in China but also had to provide these large customers with extended credit terms. This required a trade finance facility that would fund the business from payment to the manufacturer right through to the end customer paying.

    We assisted by arranging a cash flow finance facility that finances the entire trade cycle.

    • By using the confirmed order we were able to secure finance to pay the manufacturer by a documentary credit. This facility was in place until the goods were delivered to port in the UK.
    • An import loan was then structured to repay the letter of credit until the goods were delivered to the customer.
    • Once the goods were delivered and an invoice raised an invoice finance facility was used to repay the loan.
    • When the customer paid the invoice finance facility was repaid and the cycle was complete.

    By using this combination of trade finance and invoice discounting on a rolling basis our client was able to secure new orders with the confidence that they could deliver. This combination is often called import finance.