- 18 Jan
Trade Finance For Unfinished Seed Planting Device For Supermarkets
Financing imports is another aspect of how we help support UK companies. In this recent case, we were able to support a distributor that had developed an innovative bio-degradable seed planting device that was being ordered by a supermarket chain. Our client needed trade finance to assist with the purchase of the raw materials.
This was an innovative product aimed at increasing the number of people that could grow their own food at home, a noble aim that will help address the climate change crisis.
Trade Finance For Seed Planters For Supermarkets
Our client had orders from a well-known supermarket, and they expected further orders from others. They needed funding to get the bio-degradable raw materials that they required for the production of the final products. This would normally be straightforward as supermarkets are often good quality established companies that can be credit-worthy. This normally makes the funding process simpler.
Importing Finished Versus Unfinished Products
However, in this case, our client's existing factoring company had declined to assist with financing the imports as the goods imported products were not finished goods. This is a common issue, trade financiers often prefer the product to be "finished". This means that there is no further work to be done, hence it can be sold immediately at full value. This minimises the risk to the funder if they have to resell the goods.
Financing The Import Of Unfinished Goods
However, this was not our client's method of operation. They were not importing "finished goods", as there was an element of assembly to be completed once the product was received. This was a problem that we were able to overcome. We found them an independent trade finance company prepared to finance the import of unfinished goods. This is a great example of how the approach to funding is not common across the market, and we can help customers find funders that can help where others cannot.