Purchase Finance
Need ad-hoc funding to purchase stock? Purchase Finance could be the ideal short-term solution.
It's never been more important to provide customer satisfaction by ensuring that products are in stock and delivered on time. Purchase Finance provides the invaluable top-up funding you need to purchase vital stock so you never have to keep the customer waiting.
Why Purchase Finance?
In today's climate, the last thing you want to do is turn customers away. Purchase Finance is a convenient facility you can draw on occasionally to ensure you always keep your promises. It's also invaluable to importers reluctant to take a cut in overdraft facilities whilst a letter of credit is outstanding.
With Purchase Finance you enjoy:
• An invaluable source of top-up cash funding when you need it
• Completely confidential – your bank and customers need never know
• No need to reduce your overdraft facility or block funds for a letter of credit
• Goods do not necessarily need to be pre-sold
Who can (and can't) use Purchase Finance?
Purchase Finance is ideal for wholesalers, importers & exporters, retailers and manufacturers – in fact any business that relies on getting goods to the customer on time.
With Purchase Finance, we need to apply for a credit limit on your company in line with the requested size of your facility. Therefore we regret that the service isn't available to new start-ups, insolvent or loss making businesses or those with adverse credit information such as CCJ's.
How much does Purchase Finance cost?
Purchase Finance whilst not being the most inexpensive form of funding is totally flexible and reassuring to know it's there should you need it. It's a flexible service that doesn't insist that goods are pre-sold or preclude materials needed for manufacturing. We don't take over the transaction by buying stock and invoicing your customer and we don't insist on any minimum annual transaction values.
Once we have established a facility, you may then, as required send us details of your supplier's requirements together with the agreed security deposit. We then pay your supplier in accordance with his terms so you receive the goods on time and possibly negotiate an early settlement discount.
We then levy a one-off charge for opening a transaction with financing charged on a monthly basis. Disbursements such as opening letters of credit are charged at cost. Our charges depend upon the size and volumes of the transactions and the length of time that the transaction is open.
