Whisper it, but we need to talk about Christmas. Even though for most of us Christmas is the last thing we want to think about, retailers and their suppliers are now in the throes of gearing up for the holiday season. Orders have been placed, store shelf plans put together, and manufacturers are ready to go. The only missing thing is order fulfilment.
For many small businesses, Christmas is more often than not their key time of year, accounting for much of their turn over, whilst also being the biggest headache they have to manage. Finding the cash to pay their manufacturers/suppliers in order to ship the goods in time to fulfil the orders can be easier said than done. This is where trade finance comes into its own.
There are a number of specialist lenders who will work with UK SMEs in order to allow them to fulfil current orders, take on larger orders, and manage their in-house cash flow. Their trade finance products work by them acting as your buyer. You will liaise with your supplier as normal, but the order will instead be placed in the name of the lender. This allows them to pay any deposits to allow good to be manufactured, then the remaining balance can be paid when the goods are ready to ship.
The lender will even cover VAT, duty and freight meaning 100% of landed costs can be covered. Repayment goes to the lender via the proceeds of the final invoice raised to the end customer. They can even work alongside a 3 rd party factoring company if you have this type of facility in place already. The beauty of this is that it allows you to allocate cash to other parts of the business.
Working on a transactional basis means that a facility of this type revolves and is always ready when the next order is due to be placed. You can use it as little or as often as you want. It can be used constantly throughout the year with multiple transactions outstanding at once, or just used to assist during seasonal peaks.
Ascendis Funding Solutions work with these specialist lenders and can assist you in getting a Trade Finance facility set up for your business.
If you would like to know more, get in touch directly with Glyn Jones on 07519 871 870 and we can discuss with you what options are available to you.
Alternatively you can email us at firstname.lastname@example.org