Freight Finance alleviates import tariff and duties from causing costly delays

Freight Finance alleviates import tariff and duties from causing costly delays

At a glance: It’s a line of credit to purchase inventory, finance freight and duty charges to free up working capital for day-to-day operations.

It is estimated that over 60 percent of clients have had products affected by tariff increases or unknowingly imported items without understanding costs.

Affected clients often found that the average landed unit cost could increase an import by about 30 percent due to the tariffs and subsequent port fees from holdups clearing goods.

Money tied up in your supply chain is money you can’t access.

Freight financing covers port fees and customs duties while purchase order financing can cover all inventory and transportation costs to fulfil a large customer order.

Funding can also be offered while the cargo is still on a ship. Customised repayment terms are precisely tailored to customers freight movements and end customer payments.

A volatile geopolitical climate is driving tariffs and represents an unexpected cost, which makes them all the more disruptive. Working capital gets funnelled away from businesses that need cash on hand to fund operations (OpEx) and instead diverted to paying tariffs.

Need help funding inventory, freight or duties? Ask Stak.

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We regularly share our thoughts on trade finance, lending, procurement, logistics, and international trading.

Stak provides working capital to clients that sell to some of the largest buyers in Australia & overseas.

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