Trade, procurement and inventory financing
Snapshot: Facility sizes: $50,000 – $5,000,000Maximum LVR: 75%Maximum term: 2 years (24 months)First mortgage rate: From 7.99% per annumCaveat/Second mortgage rate: From 1.5% per monthPurpose: Refinancing (defaults, end of term), bridge (rapid equity release), ATO debts, non-residents, etc Stak partners are enjoying a higher than expected volume of short-term funding inquiries since the credit tightening. We’re […]
An entrepreneur’s worst-case scenario: You land a significant sales order from a corporation or government agency, but don’t have the capital to pay the supplier/s. If you can’t find some money — fast — your business faces the potential loss of the order and likely the customer relationship. Entrepreneurs in this situation are gravitating towards […]
Landing a large defence contract should be cause for celebration, but what if it’s larger than you can handle? There are over 2,000 small and medium enterprises (SMEs) throughout Australia providing services such as software development, precision manufacturing and specialist engineering for the defence industry. Many of these businesses do not work directly with Defence, […]
The term purchase order finance is well known to many people, but many still do not understand the depth and value of PO finance solutions. Even though purchase order finance has evolved a lot in the past few decades, many traditional lenders and financiers still view it through the lens of the past. PO finance […]
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 […]
Unless a company is “bankable”, it is challenging to find manufacturing or production financing to fund working capital during the pre-invoicing stage of production. What is WIP? Work in process (WIP) is the part of the inventory that is being “worked on” or has an aspect of “conversion” and is yet in the production process. […]
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 […]
Original post credit: The Balance A letter of credit is a document from a bank that guarantees payment. There are several types of letters of credit, and they provide security when buying and selling. Seller protection: If a buyer fails to pay a seller, the bank that issued a letter of credit will pay the seller […]
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 […]
A popular financial tool for international trade is the letter of credit (LC). Trade finance has become an integral tool of modern trade, a crucial element facilitating what is known as the trade cycle funding gap. The LC covers the financial security required for a transaction to take place between a buyer and seller of […]
