If you are importing goods into the United States, what are the key differences between the best import financing companies?
With your livelihood at stake, the margin of error when picking the right import or purchase order financing company is minuscule.
Let’s look at these six essential variables when picking the best import financing company for your specific needs:
Your Time in Business
Many import financing companies will not work with startups or businesses less than two years old. Factoring can be very startup-friendly based on your industry experience. If your background and experience can give us some level of comfort, factors can fund your import company startup.
Your Product Type
Consumer imported products typically turn fast, and they allow you decent margins. More complex products or components that one uses to manufacture another product can add to the level of complexity. Make sure your potential import finance company understands all your product steps.
Your Sales Volume
Different funding companies have different sweet spots. Our typical client does $50,000-$10,000,000 per month with us. On larger transactions, we have trusted partners who we can bring in as participants.
Your End Customer Makeup
Factors cater to different services. For example, WIP Funding has good experience with Walmart, Amazon, Time-Warner, Comcast, TJ Maxx, the US Government; to name a few. Some vast Fortune 500 companies treat their vendors and suppliers with respect. Others? Please call us, and they can share our 21 years of experience with almost every account debtor.
What are your Vendor’s Terms?
Factors have many tools to facilitate the purchase or release of your imported goods. Open Credit, Cash Against Documents, Vendor Guarantees or Letters of Credit are just some of the tools for your overseas vendor to release your products and to meet the quality, quantity and timeliness specifications of your end customer.
Have You Chosen the Import Financing Company with the Right Fit?
Many Import or Purchase Financing Companies only specialize in one distinct area. Some do only garments. Some only fruits and vegetables. Others have electronic expertise. Those comfortable with licensing issues can fund wine and spirits companies. Make sure the import financing company you choose has deep experience in your specific product classification. You can find a list of our inventory type expertise here.