Entrepreneurs who wish to break into the import company will face various difficulties. Establish their name and get the trust and loyalty of new customers and suppliers are only two of the challenges they need to cope and overcome successfully.
Getting enough funds or money to support the beginning and ongoing operations of their import business can also be as difficult. In the import company, you must have the means to pay your supplier.
The good news is that various option entrepreneurs can take into account when looking for ways to finance their import activities. These options include:
Factoring customer accounts. Under this funding option, the account receivables of your company would be sold to a customer funding company, a business financing company or a bank at a reduction of 80 to 90% of their nominal value. In return, the factoring company would give you a check in which fees of two to three percent have already been deducted. You can then use this money for import financing. When you account factor on accounts, it is now called a asset loan.
Financing order commands. This financing solution is quite similar to the factorization of customer accounts. Under this option, you give or sell your purchase orders to a banking or commercial financing company. This company will then support all processes that involve billing and money collection of your customers. Once your products delivered, your customers will pay the bank or the commercial financing company. Part of this payment will be allocated to the financing company and the rest will be given. In general, the financing of order orders costs more than traditional bank loans. However, if you fail to get a loan, this is an option you need to consider.
Inventory financing. In this financing solution, you would use the current inventory of your current business to get a loan. This loan will allow you to buy supplier goods abroad that your customers were waiting. With this option, you can increase your inventory without having an unfavorable impact of your cash flow. Banks and funding companies offer three types of inventory financing: soil planning, storage privilege and field storage.