Importing / Exporting Businesses
Many businesses import products from overseas which are then utilised in their manufacturing or value adding process.
End products are then sold to the domestic market or exported to the international market. Cross-border dealings create many transactional and business risks.
For instance, if you are purchasing goods from an overseas supplier there are inherent risks that you pay for the goods without the product ever arriving in the country.
If you were purchasing goods from a domestic supplier there is legislation and government bodies to recoup your outlay if such an event occurred.
However, international dealings do not provide the same comfort if a certain transaction becomes litigious.
Ensuring that these risks are addressed and minimised is extremely important to ensure both the viability and the continuation of your business.
JCM Finance can assist businesses who import or export (or both) by taking the time to understand the supply chain of your business and the inherent risks associated with international transactions.
It is also important to understand how, when and in what currency payments to suppliers are to be made. The Global currency market has been very volatile in recent times which can have a negative impact on business margins if the right measures to hedge against these movements are not addressed.
JCM Finance will be able to discuss and identify these risks that may be present in your business and ensure that the most appropriate lender can assist you and your business.
Below are just some of the products / facilities that certain financiers provide for Importing / Exporting Businesses:
Documentary Letter of Credit
Forward Exchange Contract
Standby Letter of Credit
Domestic & International Trade Finance Facilities
New / Growing Businesses
It is very common for a new or rapidly growing businesses to experience challenges with their cash flow.
This is particularly evident in businesses that offer terms of trade to their customers and sometimes it can be difficult for business owners to understand why their business is experiencing cash flow issues whilst their sales continue to experience rapid growth.
As sales increase so too should available cash, right? It’s important to understand that net profit and available cash flow can be two VERY distinct things.
At JCM Finance we understand how a new or rapidly growing business can experience cash flow issues and can look at strategies to improve on this going forward.
Additionally, there are a number of finance products that can assist to alleviate some of the cash flow concerns that have arisen from the timing difference of cash flow throughout the operating cycle of your business.
Below are just some of the products / facilities that certain financiers provide for New / Growing Businesses:
Commercial Overdraft Facilities
Debtor Finance Facilities
Trade Finance Facilities