Trade, procurement and inventory 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 […]
Before you commit valuable resources and capital to export your goods to foreign soil, it’s crucial to understand the pitfalls you could be up against when entering new markets. It’s common to stumble upon the opportunity to export when a foreign company placed an order. Or it’s an ambitious plan to expand internationally and now […]
International businesses understand the importance of cash flow. Without access to liquid funds, growth slows, and competitors start to take up the market around you. Unless your business has unlimited access to working capital, cash must be sourced externally. There are other solutions available, however, meeting the unique challenges associated with international sales and can […]
We’ve been busy testing new trade facility variations with a number of clients and advisors. Demand for a line of credit to pay suppliers with no repayments during the term has been received very well and attracted a number of broker partners to offer our non-advertised product to prospects. . . . Stak‘s “Standby” Trade […]
Negotiating supplier payments can become your biggest hurdle when sourcing goods from foreign suppliers. Suppliers need the confidence that you’ll make payment or have the financial backing to complete. You want guarantees to ensure that your supplier performs before releasing funds. Dealing with new suppliers can become your largest risk impacting your operation right when […]
Education in purchase order financing (PO Finance) in crucial as very few lenders, finance brokers or operating companies know what the value proposition is. PO Finance is not asset-based financing (factoring, debtor finance, equipment or mortgages) since the assets have not yet been created. A purchase order is not an asset. It is simply a […]
Structured trade finance is used primarily in the commodity and inventory sector by traders, producers, and processors. Structured trade products are mainly warehouse financing, working capital financing, and pre-export/import financing. Some lenders extend lending and finance for the conversion of raw materials into products in addition to payment guarantees to suppliers. Historically, $8 trillion worth […]
Nothing is more certain than having the ATO come collecting on your back taxes. Manage it correctly, face a hefty payment or worse, liquidation. You’ve used the tax office as your line of credit long enough “the jig is up”. It’s common for businesses to avoid alternative funding solutions or they believe it is too […]
Securing orders from overseas corporates is challenging and exciting, but it comes with a few caveats. Negotiating payment terms on foreign soil often lead to a reluctant “Yes” to win the orders, quickly followed by the gaping hole in cash flow. Business owners will throw large resources into fulfilling orders, channelling capital into production, raw […]
You or your client has just secured foreign buyers and about to experience international sales growth. The problem: You’ve got strong buyers wanting your products and funding the growth will starve your business of working capital to procure the goods. What is multi-jurisdictional financing? Simply, it’s pertaining to more than one jurisdiction (WIKI). Not so […]
