Trade, procurement and inventory financing
A sudden change in market conditions and a shift to “”Fortress Australia”” thinking is resulting in a surge in domestic production to meet demand. Australian producers are struggling to keep pace with demand. As consumers switch to local produce and Australian made products, domestic production and procurement have skyrocketed. This surge in demand is creating […]
Intercreditor agreements with factors were always a significant obstacle in closing a purchase order financing deal. For starters, there is a good deal of unfamiliarity with purchase order financiers – even concern – that the purchase order funder might be taking over the senior lender’s collateral position or may refinance the client away. This, of […]
Acquiring the right loan for cattle farming, sheep raising, poultry or your aquaculture business can be the tipping point your livestock venture needs. Livestock finance lets you fund the purchase of sheep and cattle for backgrounding, finishing or trading purposes. Additionally, funding can release immediate working capital against existing livestock. Security is often on the […]
For entrepreneurs and business owners, supply chains have had a transformative effect upending traditional inventory models and creating opportunities for many lenders. Still, factors, in particular, need to find new ways to support companies during critical periods of growth. Unexpected extraordinary amounts of capital injected to fulfil sales orders can generate significant benefits for the […]
Despite the abundant liquidity in business financing, Purchase order finance remains an excellent tool for startups, growing companies with unexpected capital demands and those in a turnaround. PO funders rapidly employ 100% of the transaction working capital and operate as a cash-flow creation tool for companies that produce, buy, assemble and sell products. Often closely […]
The misconceptions surrounding supply chain finance, trade finance and purchase order finance have grown since the misuse of terms. Providers are quick to market products across a broad spectrum of “keywords”” to attract potential prospects, confusing business owners, often resulting in inconsistent and mismatched debt facilities. Even business development managers (BDM) struggle to understand explanations […]
Purchase order finance or pre-delivery financing has continually evolved to meet the individual customer needs in this ever-changing business world. The term purchase order finance is well known to many people, but many still do not understand the depth and value of PO finance solutions. Leigh Dunsford, Stak Even though purchase order finance has evolved […]
Even seasoned veterans of purchase order financing can still be surprised by the misconception by some lenders and factors as to what purchase order financing is. Properly characterised as “structured inventory financing”, this insight will discuss how entrepreneurial lenders can lift the veil on the misconceptions of when to lean on a purchase order financing specialist. When […]
When a company wants to buy goods from a supplier, they need to find creative ways to pay for them if the cash is not immediately available. They can either apply for open credit terms (less common) or go searching for the working capital from equity partners, private investment firms, supply chain finance providers, banks […]
Import businesses are often profitable due to the lower cost of manufacturing goods from countries such as Korea, China, and Mexico. Getting the goods landed in Australia, marked up and sold for a profit can create particular cash flow challenges. If done correctly, importers stand to profit from lower cost to sale margins as long […]
