The cost of waiting for items ordered from overseas to turn into sales can be prohibitive to some businesses trading or even trying to grow. Often having to pay suppliers offshore in advance of goods arriving places a lot of stress on the businesses cash.
Purchase order finance is ideal for companies that need to smooth out business cashflow fluctuations caused by the need to pay offshore suppliers before receiving funds from local customers. Our extensive experience in international trade, including international payments, means we can offer a purchase order finance facility that is fully customized to your specific requirements.
This means instead of having to pay up to 90 days in advance before you can even receive the goods, then waiting another up to 60-70 days for the customer that originally ordered the goods 4 months ago, for payment (that's up to 5 months cash you cant use) Lock Finance has the flexible solution. Funding your debtors confirmed order, facilitating the supplier payment - yes we even remove that hassle from you! This means your cash is not tied up.
After receiving the goods, delivering the goods and invoicing the customer Locks will release cash in your invoice (which is much larger than the original order due to your added value and margins) which will repay your purchase order funding and give you cash flow to carry on trading.
Often using these facilities can reduce the cash flow conversion cycle from 5 months for the business to wait and carry to a matter of days.
If you are importing to orders and want a better way to fund the cash flow and remove some of the hassle and stress dealing with overseas payments - talk to the experts today.