There are many specialised types of finance available: Accessing Funds to Fulfill an Order: - Trade Finance provides upfront funding for confirmed orders, an ongoing supply of cash against invoices raised and then help with distribution. No matter what situation your business is in, there is a trade services solution to fit the bill. Trade Finance is essentially a pick and mix menu of solutions that you can access when required: buying goods buying goods and selling them buying, selling and moving goods If you want assistance buying goods and have a confirmed order but do not have the funds to fulfill it, the lender will provide the upfront funding to complete that order. They will pay your suppliers for you and then invoice your customers once they have received the goods. They will then refund the monies to you minus an administration fee. (Trade services solutions are tailored to each business so the fees will depend on the individuals own unique requirements but an approximate average is 5% of sales value) However, if you want assistance 'buying and selling goods, they will we provide the upfront funds to pay your supplier, but can also release up to 85% of the value of the invoices raised against those orders. And finally… if you want to buy goods, sell them and then move them - they can do this too! They provide a complete supply chain solution, marrying logistics with the finance solutions described above. Purchase order financing: - used where the inability to finance raw materials to fill orders would leave a company operating under capacity. The asset-based lender finances the purchase of raw materials, and the purchase orders are then assigned to the lender. After the orders are filled, payment is made to the lender, and the lender then deducts its cost and fees and remits the balance to the company. Stock finance: - can be used to overcome stock shortages and the stock does not have to be pre-sold. Asset based lending: - a secured business loan where assets, including stock and even brands, are offered as collateral. Access to a revolving credit facility may be provided on the total value of assets. Advances vary on the type of asset with plant and machinery commanding up to 80% and raw materials down to 30%-70%. Floor plan financing: - certain industries require significant high-priced finished goods inventory such as automobiles, refrigerators, washing machines, televisions and stereo systems. These are supplied on extended credit terms to retailers. Rather than purchase this expensive inventory outright retailers can go to a finance company for credit to purchase the inventory, secured by the product "on the floor". Click here to download the Trade Finance datasheet.
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