Import Company Financing Options
Running an import company can be very exciting yet challenging at the same time. As demand for cheap produced goods has increased, so has the number of importers that are constantly growing their businesses.
To be a successful importer you need three things – excellent suppliers, solid customers and the right financing. As a matter of fact, having the right financing can make or break your company.
Importers always play a delicate balance with their financing. The thought is to have as much financing as possible that is active (in use), backing up active buy orders from clients. But, this delicate balance of living on the edge with financing has its drawbacks. What happens when you get an order that exceeds or exhausts your bank financing? Unless you have a fantastic track record, it is unlikely that the bank will extend you further financing.
Your best option is to use buy order financing.
Buy order financing can cover up to 100% of the necessary financing to deliver on a buy order from a large client. The financing company handles the process of getting a letter of credit (or similar method of payment) and paying your supplier. This enables your supplier to deliver the product and allows you to book the sale.
Buy order financing also allows you to increase your purchasing capabilities dramatically, enabling you to book orders that in the past may have been too huge for your company. With it, you can take your company to the next level.
As a financing tool, buy order funding is simple to use. The process of establishing an initial account with a financing company can take a week or two. All qualified orders after the account is established can be financed in days. And, qualifying for buy order financing is much simpler than qualifying for a bank loan or line of credit. The main requirement is a buy order from a solid commercial customer.
Buy order financing is commonly used in conjunction with factoring (invoice factoring). Generally speaking, factoring is cheaper that buy order financing. So, by combining both financing tools, you can lower the total cost of financing.
About Commercial Capital LLC
We specialize in business financing and can provide you with a letter of credit as part of our buy order financing and invoice factoring financing programs . For more information, call Marco Terry at (866) 730 1922.
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