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Trade & Import Funding

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Import Finance – Solutions for Importers

When you are running a business, you have to be strategic when choosing who your business partners are going to be and who will serve as your suppliers. Sometimes, the most cost effective option is from suppliers abroad. Trade Financing and Import Financing provide foreign manufacturers access to US markets through Capstone’s network of buyers, wholesalers, and distributors. They allow for a seamless transaction between the business and the overseas supplier that does not interrupt cash flow. They also grant peace of mind to both the business, who may be uneasy with the risk associated with purchasing abroad and the supplier, who may be wary about shipping large amounts of goods without payment.

How It Works

Trade finance allows businesses to obtain goods from a supplier with very little cash up front. When a supplier abroad is going to export goods to a business partner elsewhere, they are going to want to be assured that they are going to receive their payment in a timely fashion. Instead of the business owner paying right away, the institution handling their import financing will instead produce a letter of credit that will be presented to the supplier or their finance company. This letter of credit serves as a guarantee of payment if the conditions of the initial agreement are met. Upon receipt of goods, payment is made to them.

This arrangement can be used for a one-time purchase of supplies for abroad, or can be used on a continuing basis of there is going to be a lasting business relationship between the importer and the exporter.

Trade and import financing can be extremely valuable tools both for the importing business and the exporting supplier.

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Letters of Credit

A letter of credit is a document produced by a financial institution delivered to another financial institution that guarantees payment of a certain amount. It is most often used between banks that are in different companies, for the purpose of international trade. If as a business owner you pursue import financing with a supplier from a foreign country, they can more confidently accept your proposal to work with them even if you don’t have the money to pay them upfront. The letter of credit will serve as a guarantee of payment from your bank to theirs, as long as they hold up their end of the previously agreed upon transaction. You then repay your bank that provided that letter of credit under the terms of your financing agreement.

Why Trade Financing

Sometimes, the best deal on supplies simply cannot be found domestically. Capstone recognizes that and has been engaged in international merchandise purchases and sales since its inception. Capstone’s operations involve the import of products from Asia, India, Europe, and South America.  We can offer a less expensive alternative to “in-house” export operations. Don’t be deterred from looking for suppliers abroad because of inexperience working with foreign suppliers. Capstone can help you leverage our expertise to your advantage.

Capstone not only has the resources to provide trade and import financing but also to arrange the logistics of the delivery of product. Capstone is able to assist with setting up the required import services, including air and sea shipping, inland freight arrangements, preparation of shipping documents, export licenses, and the establishment of letters of credit. This alleviates a great burden on you as the business owner, especially if you are not very familiar with foreign trade. We are able to save you time and money, freeing up your resources to continue to work on ongoing projects and take on more work.

Our representatives have the experience necessary dealing in foreign markets to be able to work with you to find a solution that will meet your financing needs. The same solution might not work for everyone. We recognize that every business operates under different circumstances. We will work together with you to find what works best in your case.

Bring your business to the next level by strategically working within our global economy. Stop using resources you don’t have to from continuing inefficient in-house export programs. For more information on Capstone and to receive a quote, please email us at [email protected] or call us at 212-755-3636 to speak with a representative today.