Cutting edge solutions for importers
Importing goods from overseas can have an undesirable impact on cash flow for any business.
Fortunately, trade finance facilities, close the funding gap between payment demanded by the overseas supplier and receiving payment from the customer.
A wholesaler of hair extensions was experiencing rapid business growth and required access to working capital in order to import stock to meet increased demand.
In its initial months of trading they had built up an impressive customer book of 300 salons. However, due to stock shortages, they were only able to service approximately 30% of orders
With customers expecting goods to be delivered within 5 days of order, but a 4-6 week wait on goods being shipped from China, it was essential that our client was able to hold items in stock.
With payment for the goods often required before dispatch by the supplier, they were originally restricted to importing small batches at any given time, resulting in higher costs and some customers dissatisfied, after experiencing long delays.
Keen to meet the demand and make the most of the opportunity available by servicing all their customers well, the business sought a finance facility to bridge this cash flow gap.
However, with limited trading history and no confirmed purchase orders, they found obtaining the appropriate levels of finance a real challenge.
After investing a lot of time in contacting funders directly with no success, the business contacted Hilton-Baird Financial Solutions and we were pleased to assist.
Despite the company’s previous unsuccessful attempts, with our extensive range of funding partners, we were quickly able to introduce the company to a selection of lenders who could deliver.
After comparing the options, the client went ahead and secured a competitive £50,000 trade finance facility which has allowed them to increase stock levels and service all of their customers.
This has helped the business to double turnover in a short space of time, with further growth expected. The business is now looking at new lines of stock with the confidence that they have adequate support to import more goods without restricting their cash flow.