There is a lot to know about import financing, including how to generate cash fast for the goods that you need. If you import merchandise to sell, consider these three methods to get paid for your products:
Factoring
Factoring is also called accounts receivable financing. This involves selling your company’s accounts receivable to a lender, who in turn collects payments from your customers to defray the loan. There is a discounted rate of receipt, since the creditor is collecting for you, and they take their payment and fees off the top. The advance monies given to you by the factor may be all you need for your import financing and fiscal health.
Purchase Orders
Have you considered purchase order financing for your import financing? Seek out a commercial finance company to become the factor for your company, which means they will take over receipt of payment from customers, garnering their finance payments off the top. You will receive what is left after payment and fees, which can significantly lessen the administrative labor that you need to put in. This sounds a lot like factoring, but there are distinctions; talk to a lender to learn more. Purchase order financing does come at a cost, but if the profit potential of your imported goods is high, it can be well worth it.
Inventory
While you will pay more for the convenience, you may want to consider inventory financing as one funding option. Use the goods and merch that you have on hand now, to secure a loan for the imported inventory that you need. This is an effective way to expand what you offer and provide for your customers when you are lacking cash flow.
Find out more about how to get the money that you need for your import business right away. Talk to the money professionals at Monterey Commercial Capital, an alternative lender, about import financing options today!