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.