Aftermarket research, you may realize that sourcing for local goods may be expensive than importing. If your business model establishes this gap, you should shift to import business. With import business, you must determine your source of funding. Following in-depth research, the excerpt defines three ways of import business financing.

1.      Purchase Order Financing         

Some customers can be hectic to deal with, especially those that delay payments or fail to pay together. To mitigate this risk, you should send your invoices to a finance company. The company will take up this task and collect payment from your customers. After receiving payment, the finance company will deduct its cut and process profits to your business account. However, you need to ensure that you have a high-profit margin from your import business due to finance companies’ high fees.

2.      Cash Against Documents (CAD)

As an importer, you may decide to reach out to a bank. It is worth stating that the bank requires shipping and title documents from the importer. Importers only get their shipment after releasing full payment to exporters. The beauty of this form of cash advance is that you mitigate some of the risks of releasing payment before receiving your goods.

3.      Cash in Advance

As an import business owner, you may opt to make payment in advance. This implies that you pay exporters then wait for them to deliver the products. The beauty of this form of payment is that it is straightforward. Nonetheless, you need to factor in liabilities involved, such as delayed payment and supply of poor-quality products. By deciding to take up this form of financing, you must define the deposit percentage to pay.

Import Financing with Kasher Capital

At Kasher Capital, you are guaranteed to get the best finance solutions for your import business. It is upon you to reach out to our highly-trained team for prompt services.