How to use finance to purchase overseas equipment and machinery

If you’re a business owner looking to bring equipment and machinery from overseas, the difficulty you run into is a lender here will want to take security of the product – that can only happen once it arrives. So you’ve got the gap between paying your supplier overseas and getting the equipment and machinery here.

If you want to preserve your cash and use finance to make the purchase you can fund that gap in two ways.

One is to use an unsecured business loan.

Another way is to use a trade or an import line of credit.

This line of credit can be used to pay for domestic or international material supplies, and included in that is equipment and machinery.

The benefit of that is that the cost of the trade and import finance is about a third typically of what you might pay for an unsecured loan so it represents great savings to your business.

Having this kind of facility makes the process easy and fast. And then once the equipment arrives you can replace the import finance with a three, four, or five year term.

#businesslending #labourhire #wholesale #electrical #manufacturing #engineering #civil #earthmoving #excavation #transport #freight #logistics #supermarkets #foodandbeverage #tradefinance

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