Posted by admin on Mar 1, 2011 in
Finance Whether you are starting an import business or have an established importing business, it can be a very profitable venture if you have the right financing to grow your business. Imports are defined as: a good that crosses into a country, across its border, for commercial purposes; a product, which might be a service that is provided to domestic residents by a foreign producer; or a combination of the two.
Starting or running an import business has never been more profitable because of computers, the internet, and the availability of low cost imports from countries such as China and Mexico. These imports may be resold for up to ten times their cost depending on the competition in your field of operations.
It is essential that you have good, honest suppliers plus creditworthy customers with purchase orders for your imports. If you have the right financing, your business can grow exponentially. But how do you finance growth if your own resources or bank lines of credit are not sufficient to take advantage of big opportunities? A combination of purchase order financing, accounts receivable financing with inventory financing may be the solution.
Definitions:
Purchase Order Financing
Purchase Order financing is the assignment of purchase orders to a third party, a commercial finance company, who then assumes the obligation of billing and collecting. Purchase order financing can be used to finance all current and subsequent orders to improve your company’s cash flow. The process works as follows: 1) Your company obtains a purchase order for products to be sold another company; 2) A letter of credit may be issued, based on a finance companies’ credit, to guarantee payment to suppliers or factories producing the goods; 3) The order is shipped, delivered and accepted by your customer; 4) The customer receives an invoice for the goods; 5) The Purchase Order Company pays the supplier/factory; 6) a commercial finance company or Accounts Receivable Finance Company pays the Purchase Order Financing Company after the products are delivered to your customer; 7) The customer pays the commercial finance company for goods received; 
The accounts are settled and the profit is paid to you. Read more...
Tags: Companies, Financing, Import, Options
Posted by admin on Oct 24, 2010 in
Finance Bridge financing is actually a process of financing offered by some companies before issuing their IPO in order to collect requisite cash to manage the variety of operations. Mostly the companies who go for the bridge financing which means issuing a limited number of shares on a discounted price to the underwriters that also offset the loan is a great way to collect cash in advance.
In a nutshell the bridge financing is a kind of forward payment made out of the future sales of the new issues. If we try to define the bridge financing offered by the California mortgage companies we can say that it is a means of financing which is taken in order to maintain the liquidity in the situation where you are expecting a reasonable inflow of cash.
Bridge refinancing is used by the companies, homeowners and even by the banks as well. This kind of financing is subdivided in to two different types as;
Open Bridge Financing
It involves a great deal of risk for the lender as in this situation the borrower do not give a fixed date to have finance exit and may be engaged in finding out the right customer for the property.
Closed Bridge Financing
It is more secure and certain as you have a sure date in order to exit from the bridging finance. The degree of risk is lower that is why the rates are also low.
Advantages Of Bridge Financing
1. The bridge financing is one the quickest and readily available form of financing.
2. People generally take it to meet out the foreclosure situation.
3. It helps in maintaining the easy liquidity for any sort of mortgage. Read more...
Tags: Bridge, California, Companies, Financing, Mortgage
Posted by admin on Apr 16, 2010 in
Finance Whether you are starting an import business or have an established importing business, it can be a very profitable venture if you have the right financing to grow your business. Imports are defined as: a good that crosses into a country, across its border, for commercial purposes; a product, which might be a service that is provided to domestic residents by a foreign producer; or a combination of the two.
Starting or running an import business has never been more profitable because of computers, the internet, and the availability of low cost imports from countries such as China and Mexico. These imports may be resold for up to ten times their cost depending on the competition in your field of operations.
It is essential that you have good, honest suppliers plus creditworthy customers with purchase orders for your imports. If you have the right financing, your business can grow exponentially. But how do you finance growth if your own resources or bank lines of credit are not sufficient to take advantage of big opportunities? A combination of purchase order financing, accounts receivable financing with inventory financing may be the solution.
Definitions:
Purchase Order Financing
Purchase Order financing is the assignment of purchase orders to a third party, a commercial finance company, who then assumes the obligation of billing and collecting. Purchase order financing can be used to finance all current and subsequent orders to improve your company’s cash flow. The process works as follows: 1) Your company obtains a purchase order for products to be sold another company; 2) A letter of credit may be issued, based on a finance companies’ credit, to guarantee payment to suppliers or factories producing the goods; 3) The order is shipped, delivered and accepted by your customer; 4) The customer receives an invoice for the goods; 5) The Purchase Order Company pays the supplier/factory; 6) a commercial finance company or Accounts Receivable Finance Company pays the Purchase Order Financing Company after the products are delivered to your customer; 7) The customer pays the commercial finance company for goods received; The accounts are settled and the profit is paid to you. Read more...
Tags: Companies, Financing, Import, Options
