Ecommerce & Digital
Business Funding for Import/Export Businesses
Import/export businesses deal with long lead times, currency fluctuations, and payment terms that can stretch 90 days or more. You are paying overseas suppliers by letter of credit or wire transfer weeks before the goods arrive at port, clear customs, and reach your warehouse or customer. Shipping costs, tariffs, and customs brokerage fees add layers of expense that require upfront capital. The margin on each transaction can be good, but the cash is tied up for a long time.
Common Uses
What Import/Export Businesses Use Funding For
- Fund letters of credit and supplier payments for overseas purchase orders
- Cover shipping costs, customs duties, tariffs, and brokerage fees
- Bridge the gap between paying suppliers in foreign currency and collecting from domestic buyers
- Finance warehouse space and inventory staging for imported goods awaiting distribution
Funding Options
Best Funding Types for Import/Export Businesses
Trade Finance
Specialized financing for international trade that covers letters of credit, purchase order financing, and export credit. Trade finance lenders understand the documentation requirements and can structure facilities around the timing of your shipments.
Purchase Order Financing
A lender pays your overseas supplier directly when you receive a purchase order from a buyer. You deliver the goods, collect from your buyer, and repay the lender. This lets you take on orders larger than your cash position would otherwise allow.
Foreign Exchange Line of Credit
Hedge currency risk and fund international payments with a dedicated FX facility. This protects your margin from currency swings between the time you negotiate a price and the time you pay the supplier.
What Lenders Look For
Qualification Notes for Import/Export Businesses
Related Industries
Related Ecommerce & Digital Funding
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