Import finance is used by companies that are importing goods from other countries and have limited or no credit with vendors. Importers, distributors and even manufacturers that purchase components overseas can take advantage of import finance. Import finance is typically delivered through letters of credit, however, other instruments may be used.
The most common types of import funding are:
- Purchase Order Funding
- Production Finance
- Supply Chain Finance
- Government Funding
The type of import finance that an importer can utilize will largely depend on the terms it has with its vendors and the credit worthiness of its customers. In the case of supply chain finance there is more of an emphasis on the credit worthiness of the borrower, versus the credit worthiness of the borrower's customers and is typically delivered on an unsecured basis.
While supply chain financing is typically only available to mature companies that have good credit, purchase order funding & production finance is available to companies in various stages of growth. However, production finance prospects will need to demonstrate a history of successfully manufacturing and delivering product.
While there are several forms of import finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.
Call us now at 855-424-2958 to discuss your import finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies