What Is Trade Finance? How Can It Help You?

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What Is Trade Finance? How Can It Help You?

If you own a commercial venture that imports and exports goods to and from the country, you likely have a pretty good idea of just how easily international transactions can tie up your capital and burden your cash flow. Because the shipping and transport of goods between countries can often be delayed or impacted in some way by uncontrollable factors, money is often paid out before the imported good is in your possession — and that makes it really difficult for you to get your return on the investment. In an effort to help companies bring import goods without experiencing financial stagnancy, capital groups just like ours, here at the Hedaya Capital Group, offer import financing to alleviate the financial pressures experienced by international trade.

In today’s blog, we are going to discuss more about import finance and how a capital loan from our team can help your business optimize the efficiency and success of your imported goods business. Continue reading to learn more.

What Is Import Finance At Its Core?

Importing goods from foreign markets is an incredibly lucrative business, but it comes with its caveats. Sure, often times the good that you plan to import has a lower production cost and cost of acquisition than a similar product might have if made in the United States, but there are just as many challenges with importing from foreign markets as there are benefits.

Some of the more common obstacles that import businesses might require are increasing freight rates, changing import tariff costs, transaction uncertainty, long-term contracts, and over-trading. While those reasons alone might make it seem like the import industry is not worth it, there is a way to find positive cash flow — it just takes a little bit of help.

The Problems With Importing Goods

If there is one challenge that you might face as an importer it’s the lack of trust from overseas suppliers. In international trade markets, distrust can cause overseas suppliers to demand payments for the goods upfront — before they are even loaded on the plane or ship that will bring the goods to you. Regardless of the financial health of your business, upfront payments can place a large strain on cash flow due to the extended periods of time included in end-customer invoices.

When capital is tied up in invoices for 60 days, 90 days, or even 120 days, import businesses can struggle to fund day to day operations. Import financing, a tool that is essentially a way to gain access to working capital for small businesses and large corporations alike, can help to alleviate financial pressure from pending invoices so that day to day operations can operate efficiently in the meantime.

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How Can Our Import Finance Services Help?

Here at the Hedaya Capital Group, we offer a number of different financing services. From Import financing to trade financing, small business loans, invoice factoring, credit protection, and more, all of our services have a unique purpose.

Import finance and factoring is in the same family of financial services as invoice factoring and discounting — helping businesses like yours speed up the payment cycle of your business dealings to create a predictable and sustainable flow of money. In turn, you are in a better position to build strong relationships and trust with overseas suppliers — allowing you to negotiate more favorable terms and commercial contracts.

Is It Right For You?

So you are in the business of importing goods from overseas markets and have since hit a wall, leaving your commercial venture unable to grow. If this is the case, import finance and factoring might be right for you. That being said, there are a couple of things that we look for when we consider whether or not to provide your business with working capital.

As an import financing entity, we look for established businesses that have good suppliers, a proven track record, confirmed purchase orders, and creditworthy customers. Essentially, we look for a trustworthy business to “partner” with so that the transaction is equitable for both parties.

How Can Our Import Finance Services Help?

Here at the Hedaya Capital Group, we offer a number of different financing services. From Import financing to trade financing, small business loans, invoice factoring, credit protection, and more, all of our services have a unique purpose.

Import finance and factoring is in the same family of financial services as invoice factoring and discounting — helping businesses like yours speed up the payment cycle of your business dealings to create a predictable and sustainable flow of money. In turn, you are in a better position to build strong relationships and trust with overseas suppliers — allowing you to negotiate more favorable terms and commercial contracts.

Is It Right For You?

So you are in the business of importing goods from overseas markets and have since hit a wall, leaving your commercial venture unable to grow. If this is the case, import finance and factoring might be right for you. That being said, there are a couple of things that we look for when we consider whether or not to provide your business with working capital.

As an import financing entity, we look for established businesses that have good suppliers, a proven track record, confirmed purchase orders, and creditworthy customers. Essentially, we look for a trustworthy business to “partner” with so that the transaction is equitable for both parties.

How Does Import Finance Really Work?

Import factoring works on a consistent basis for qualified customers. If you are in good standing with your financing group, you can expect up to 100% financing upfront for an order’s full value. Essentially, the capital acts as an intermediary payment between the importer, the manufacturer, and the target customer. By following this framework, suppliers are paid quickly, making it easier for them to accept new orders and negotiate early payment discounts and other perks that come with an equitable partnership.

For Import Factoring In New York City, Think The Hedaya Capital Group

Optimize your import business venture by getting in touch with our team of import factoring experts here at the Hedaya Capital Group. With years of experience helping businesses establish better and more equitable relationships with overseas suppliers, our capital group can help you access the funds needed to create a positive cash flow and a consistent order, payment, and fulfillment cycle.

If you are interested in doing business with us, we urge you to get in contact with us today. As with any capital loan situation, it is not guaranteed that our capital group’s and your business venture’s goals will align, but if they do, and a profitable and fair relationship can be built, we would be happy to do business with you.

We look forward to hearing from you and discussing what we can do to help your import business thrive. Fill out the below form to give us a better idea of your situation, as well as what we can do to help!

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