Dealing with imported goods is among the best ways to earn income at a profit as they come at a low cost. While the benefits of importing business are many, it can be overwhelming to finance it. You need sustainable funds to run the import business. Getting bank financing can be difficult, bearing in mind the long tiring application. For this reason, you should consider other import financing avenues. Here are the ways to finance an import business.

Use Inventory

When you consider inventory financing for your import business, the process can be expensive but worth your time and effort. With this type of business financing, you use your current inventory to apply for and secure a loan. This allows you to buy and import goods that your customers and the market desire and sell them at a profit. As an option of import financing, you increase your inventory without negatively impacting your cash flow when you consider this option. You should, however, keep your debt serviced to avoid implications from the lenders.

Asset-Based Loan

Another best way to finance your import business is by considering asset-based loans. This involves factoring accounts receivable to a commercial bank, finance company, or any other lender in the market. With this option, you get the payment in advance, making it possible to import goods and meet the market demand with ease. You should note that there are discounts on the accounts receivable sold. This import financing option is fast and effective as you don’t wait in line, as is the case with other funding options. You also improve your business cash flow when you factor in accounts receivables. This makes it possible to run the business even in times of economic struggle.

Purchase Order Financing

As an option to import financing, a purchase order allows you to take your invoices and assign or sell them to a financing company that assumes the risks and the responsibility of collecting the payments. You get a payment including the profits after the manufacturing of your products, the payments collected from the customers, and the proceeds cut. While this is an option when banks don’t approve your loans, purchase order financing can be costly. You should, however, have a good supply chain with creditworthy customers for this to work best.

Are you struggling to find the best import financing option for your business? Contact Bold Growth Solutions for professional guidance.