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Import Finance explained

Basically there are two types of import finance. Firstly there is the type whereby you are importing pre sold golds and import finance is provided on the basis that you have pre sold the goods. Secondly there is the type where you are importing goods however they have not been pre sold and as such funding is providing based on your track record of selling these goods.

Funding for pre sold goods is certainly more straight forward and is available for most types of businesses and products. Perishable goods become more difficult to fund for obvious reasons. Businesses that have been told by their bank that they are not eligible for funding have a very good chance of obtaining funding via the more flexible and independent trade finance companies. The finance company not only can provide funding for the import element but it can also provide funding via invoice finance as soon as your goods are delivered to your customer and an invoice is raised. Therefore it is possible to obtain funding from start to finish. The finance company does this by taking title of the goods at the start of the transaction and not releasing title until the goods have been paid in full via your end user.

Banks tend to provide trade finance based on the track record of the business. Their exit route is not necessarily the guaranteed sale of the goods to your end user but is based on the ability of the importer to sale the goods and repay the facility. Therefore from a high street banks point of view a  business must be well established , profitable and ideally bank with themselves to be considered for funding.

XL Business Finance has over 10 years of experience and expertise in helping business choose the right funding solution

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XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

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