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• 08 Jul

  Trade Finance Recourse Factoring For A Perfume Toiletries Importer

  This is a case study about how we found both trade finance and recourse factoring arrangements for an importer of perfumes and toiletries.

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  Case Study Trade Finance And Recourse Factoring For A Perfume And Toiletries Importer

  This case demonstrates how we can assist small companies that are seeking small amounts of finance to help them grow.

  In this case study, our customer was a small UK importer of perfumes and toiletries. They were selling their imports from China to UK retailers and needed a relatively small amount of finance to unlock their supply chain.

  Trade Finance And Recourse Factoring

  Trade finance and recourse factoring can work well together.

  Trade Finance To Pay A Chinese Supplier

  The trade finance provides funding to pay the Chinese supplier whilst granting our client a period of credit to sell the goods to UK retailers.

  Coupling Trade Finance With Recourse Factoring

  By coupling that facility with a recourse factoring facility it extends the credit extended to our customer even further. The factoring prepayment repays the trade financing and then the factor takes over responsibility for collecting the outstanding invoices.

  Once they are paid, that repays the factoring arrangement and the chain is completed.

  Read more about Using Factoring To Repay Trade Finance.

  Finance For Small Importers

  Whilst many banks and finance houses may not be interested in providing finance for small importers regarding small shipments, we found a trade financier who was happy to help a small importer grow.

  Often, it is about helping a small company at an early stage in the hope that it will grow over time and become a larger customer.

  If you are a small importer seeking credit to pay for overseas supplies it may be a relief to know that some trade finance companies will help smaller organisations.

  If you are seeking a similar facility please get in touch with us on 03330 113622 and we will introduce you to sympathetic funding partners.

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  Further Information

  For help from HMRC regarding imports to the UK please see: HMRC Help For Importers. 

  By Glenn Blackman