The mystery relationship between factors and purchase order financiers

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 […]

How Alternative Supply Chain Finance Companies Work

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 […]

Bonded Warehousing: How to finance locked up inventory

Importers and exporters often avoid paying excise, taxes, and duties by using a third-party “bonded warehouse”. “A bonded warehouse, or bond, is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise.” […]

What is Production Funding? | Trade Finance Insights

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 […]