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 […]

Production Purchase Order Financing (Aka Work in Process Finance)

Production purchase order financing is a financing tool used by domestic manufacturers or assemblers. It’s used to procure the necessary components and/or raw materials to “make” or “build” a finished product either in their own facility or using sub-contractors. This differs from traditional Purchase Order Financing: The borrower is outsourcing manufacturing of the product. Some […]

9 Different Types of Letters of Credit to Consider

Original post credit: The Balance Letters of credit come in various forms. Some are for international trade, and some serve more local purposes. Learning about different types of letters of credit can help you choose which one to use and understand what you’re working with. Commercial Letter of Credit This is a standard letter of credit […]

What is pre-shipment financing?

Pre-shipment finance generally covers a working capital facility to fund the purchase or production of goods for a confirmed import or export order. Import/Export orders are typical for local Australian manufacturers, producers, assemblers, and distributors. Operators require working capital to cover a purchase order from an overseas buyer to purchase raw materials for subsequent manufacturing […]