THE FINANCING QUESTION
When this becomes relevant.
Start with the business circumstance, rather than choosing a product in advance.
- A credible customer order exceeds the supplier capacity the business can fund from cash.
- An importer or exporter needs to bridge supplier payment and customer collection.
- Inventory must be purchased ahead of a contracted delivery schedule.
- A growing distributor needs trade financing coordinated with receivables funding.
THE ASSESSMENT
What we examine.
These considerations shape the financing discussion and the information required for a meaningful review.
| Review area | What matters |
|---|---|
| Order economics | Contract certainty, gross margin, cancellation rights, acceptance conditions and the full cost of delivery. |
| Counterparties | Customer and supplier credibility, production capability, payment terms and concentration. |
| Execution chain | Shipping, insurance, currency, customs, delivery milestones and transition into receivables financing. |
THE STRUCTURING PERSPECTIVE
A plan that fits the situation.
One provider may finance the purchase order while another finances eligible receivables after delivery. The structures must fit together: who funds each stage, who controls payment, which liens exist and what happens if shipment or acceptance is delayed.
TRANSACTION READINESS
What to prepare.
Begin with a concise overview. Detailed and sensitive records follow through an agreed delivery method.
- Purchase orders, customer contracts, supplier quotations and payment terms.
- A transaction cost and margin schedule, delivery timetable and logistics details.
- Business financials, existing financing and the proposed collection arrangements.
The document list is indicative. The agreed service role, lender requirements and transaction circumstances determine the final package.