Import Company Financing Options

Running an import company can be very exciting yet challenging at the same time As demand for cheap produced goods has increased, so has the number of importers that are constantly growing their businesses

To be a successful importer you need three things – good suppliers, solid customers and the right financing As a matter of fact, having the right financing can make or break your company

Importers always play a delicate balance with their financing The idea is to have as much financing as possible that is active (in use), backing up active purchase orders from clients However, this delicate balance of living on the edge with financing has its drawbacks What happens when you get an order that exceeds or exhausts your bank financing? Unless you have a great track record, it is unlikely that the bank will extend you further financing

Your best option is to use purchase order financing

Purchase order financing can cover up to 100% of the necessary financing to deliver on a purchase order from a large client The financing company handles the process of getting a letter of credit (or similar method of payment) and paying your supplier This enables your supplier to deliver the product and allows you to book the sale

Purchase order financing also allows you to increase your purchasing capabilities dramatically, enabling you to book orders that in the past may have been too big for your company With it, you can take your company to the next level

As a financing tool, purchase order funding is easy to use The process of establishing an initial account with a financing company can take a week or two All qualified orders after the account is established can be financed in days And, qualifying for purchase order financing is much easier than qualifying for a bank loan or line of credit The main requirement is a purchase order from a solid commercial customer

Purchase order financing is commonly used in conjunction with factoring (invoice factoring) Generally speaking, factoring is cheaper that purchase order financing So, by combining both financing tools, you can lower the total cost of financing

About Commercial Capital LLC
We specialize in business financing and can provide you with a letter of credit as part of our purchase order financing program For more information, call Marco Terry at (866) 730 1922

Tags | bank, conjunction, credit, delicate, import, letter, level, living, matter, order