- 06 Sep
Trade Finance Quotes
We are currently working on trade finance quotes for customers and we will shortly be adding some more details of recent costings to our website. On the FundInvoice site we have always tried to bring customers actual examples of prices, and trade finance is the one area where we want to add some more actual examples so clients have an idea of the costs, even before we get them a quote.
It is a difficult product to price, as the fees are often dependent upon the exact nature of the service that the client wants. Many facilities work successfully in conjunction with factoring, such that they factor collects in the monies owed by debtors in order to repay the funding used to facilitate the importation of goods. This can enable companies with poor financials to secure funding as it is the strength of their customers that is important, not the strength of their own business.
This is the type of financial arrangement that can help you to start a business with very little of your own capital. All you need is a source of supply for the goods, and confirmed orders from good quality debtors and a the financier will do the rest. They can handle both the advance payment for goods e.g. via Letter of Credit or open credit, and they can also help you with the credit control function required to get paid for the goods once they are delivered to the end customers. This credit control support can remove the need for you to employ a credit controller or to use your own time to chase invoices for payment.
In the past I have worked with an importer of frozen food that received shipments from abroad, placing back-to-back orders with their supplier against confirmed orders from their customers.. The containers where shipped direct to well known end customers, against the confirmed orders. The importer used a finance house to fund the imports and handled the whole business from home, without ever seeing the goods. A great business model where all you need to know is a supplier and one or more customers.