Trade, procurement and inventory financing
Many Australian wholesalers start by manufacturing overseas and deliver to local buyers. But what happens once you start selling to foreign buyers as well? How do you fund your orders, deliver and offer credit terms to win orders? Here’s the scenario: You receive interest from a buyer in the United States to distribute your products. […]
Funding inventory internally or from external debt sources is a key component for any manufacturer. Having capital tied up in inventory is a balancing act of fulfilling work in progress, understanding your cash conversion cycle and ensuring that you have adequate funds for the entire operation to run efficiently. The process of transforming finished resources […]
Commercial finance brokers and factors deal in often complex funding scenarios, with the “vanilla deal” often unseen. Most brokers and factors that play in this space relish the challenge of injecting value into their client base. Funding sources need to allow flexibility, expertise, and readiness to fund scenarios that require “outside the box” working capital. […]
The business ecosystem’s unpredictability is compounding at an astounding rate. New competition appears every day, technology is driving rapid innovation and businesses struggle to stay afloat. The median life expectancy of an ASX 500 company is now only 10 years (Australian Institute of Company Directors). Companies are now aware that cash is crucial to funding […]
eBook: Purchase Order Financing: Everything You Need to Know eBook Download — Discover what this popular financing option can do for businesses which are in need of immediate cash for a short period of time to make payment/s to suppliers.
This past year, global invoice financing volumes reached USD$3.1 trillion, a staggering 20% change according to Factors Chain international. Receivables finance growth was particularly drastic in Australia (Sitting at AUD $73.7 billion), driven primarily by banks and second-tier providers in the sector. Asia Pacific growth was also up 18%, with a particular increase in China. […]
Image credit: Stuart Hill Most purchase order financing clients are importers who buy goods from another country and sell them to companies in Australia or New Zealand. A number of businesses will usually request that the financier prepay their supplier by direct bank transfer however, this carries significant problems depending on the size of the […]
Image credit: Michele Marconi Arguably the hardest time to source working capital is in the first two years of trading. Growing a new business exhausts profits with wages, advertising and fixed costs. Compounding the issue is the need to show profitability if you’re seeking to raise capital from banks to expand. Traditional lenders are more concerned […]
Most innovations and early payment initiatives focus on post-shipment financing, i.e. when the seller has dispatched and billed the buyer. There are so many tools and techniques to finance “approved” invoices today-from auctions and pcards to dynamic discounting and reverse factoring. But when you look at PO financing, you suddenly find only a few really […]
Head down to your local bank manager, get moved to the business banker and then shuffled to the trade team. If you’re lucky, you’ll speak to someone who understands supply chain financing. It shouldn’t be this difficult however, there are a few reasons why. Let’s dig in:
