Guidelines on How Manufacturing and Import Companies Can Access Financing
Manufacturing has a significant part to play in the progress and advancement of a nation. Supplying finished goods to the domestic and export market. This also is the case for the import businesses that fill the need for products and services to the country for development and progress. These businesses need a tremendous amount of money and assets to fulfill the demand for these products and services. Read more about the options that are available for your manufacturing and import business that is available here.
Inventory financing can help you acquire financing for your manufacturing and import business. This is an expensive option though very effective. By using your list of stock, you can acquire finance that will let you import the products that you can supply to your customers. This will allow you to add to your inventory without affecting the cash flow as long as you can get through this debt.
Also, financing can also be accessed through your company’s assets. This involves selling your credit accounts to a commercial finance company. The credit accounts are sold to the finance company for a percentage discount off the value of the accounts. The finance company will give you an advance payment for the accounts for a small fee that you would have to wait until their payment.
A purchasing order financing will also allow you access to finance your company. This option is almost similar to asset-based loans. This option involves presenting your invoices and purchase orders and selling them to the commercial finance company. The Company will assume the risk and take the opportunity to get paid and charge the bills. The commercial company delivers the goods after they are manufactured and collects the payment, deducts its cut and pays you the profit. The purchase order financing is not cheap compared to a bank loan. It is suitable when the banks are not lending money, and your profit margin is high enough for the good that you are importing. Purchasing order financing require you to have creditworthy customers and an excellent supply chain.
Accessing a bank loan is also an option for the manufacturing and import companies. The financing that you can acquire will be based on different factors. The bank will consider your creditworthiness and decide on the amount that can be loaned to you. The financing agreement will spell out the monthly payments that should be made and for how long.
Financing options let your company keep operating and the maintaining supply of products and services