How to Access Best Finance Options for Manufacturing and Import Companies
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.
For the import and manufacturing business, you can access finance by using your inventory to obtain financing. This is an expensive option though very effective. You can access a loan by using your current inventory so that you can import the goods that your customers’ demand. Using your inventory to obtain financing will let you accumulate more inventory without changing your cash flow pending payment of the 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 commercial finance company will pay you an advance amount for the accounts for a charge that you would typically have to wait until the accounts are paid.
Purchasing order financing is also an option that will let you acquire financing for your company. This option is almost similar to asset-based loans. This option will have you sell your invoices and purchase orders to a finance company that will buy them. The finance company assumes the risk and the task of billing and collecting. The commercial company will supply the goods and get payment, and also gets its cut and sends 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. This option also requires you to have a good supply chain and creditworthy customers.
Accessing a bank loan is also an option for the manufacturing and import companies. The amount that you can access for your import or manufacturing company will depend on various factors. The bank will consider your creditworthiness and decide on the amount that can be loaned to you. The agreement that the bank and your company get into will require you to make payments on a monthly basis for a stipulated amount of interest and period.
The financing options that are available will help you keep up with the running of your business and maintaining production and supply.