Trade, procurement and inventory financing
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 […]
How can you fund sales, operations, and administrator costs during insolvency or a voluntary restructure event? A controller appointed to a company can no doubt be a stressful event. After the controller has been appointed and determines the viability of whether to trade out of the situation or liquidate assets can often be a case […]
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 […]
An example of a relationship between Stak and our referral channels in the invoice factoring market would be a situation where an existing client has established a big new customer relationship. The client’s current sales are easily financed under a factoring arrangement; but, with the new relationship from a corporate retailer, they are going to need a […]
It’s not an easy task to find an appropriate Purchaser order financing provider if you are looking for it for the first time. It is due to the fact that very few institutions specialise in this service and advertise PO financing as one of their main services. While some banks and non-banks lenders may offer […]
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 […]
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 […]
What’s the coolest piece of equipment you’ve ever financed? Unique, luxury or vanilla imported items in our industry often come with a flair of difficulty. Securing equipment finance once the goods have landed in Australia is most often never the issue. How do you fund supplier payment to get the goods shipped in? A typical […]
Image credit: Stuart Hill Most purchase order financing clients are importers who buy goods from another country and sell them to companies in Australia or New Zealand. A number of businesses will usually request that the financier prepay their supplier by direct bank transfer however, this carries significant problems depending on the size of the […]
