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 Purchase
Order Finance is short term funding used to finance the
purchase or manufacture of specific goods that have been
presold by the client to its credit worthy end customer.
Funding entails issuing letters of credit or providing funds
that allow clients to secure the inventory they need to
fulfill customers orders.
What
is Purchase Order Finance?
Purchase order Funding can be used by Manufacturers,
Importers, Exporters, or Distributors for:
- Issuing
Letters of Credit
- Payment
to third party suppliers for finished goods
- Raw
materials
- Direct
labour
- Shipping,
packaging, inspections, etc.
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Reasons Why WCI is Utilized in Financing Transactions |
- Insufficient
Capital
Company
has solid export / import or domestic sales but does not
have the working capital to complete the transaction or
continue to grow.
- International
Expertise
Company
doesn't have the expertise and experience to structure
and complete the import or export properly. Even
established international clients will use our expertise
to make a transaction safer.
- Transfer
of Foreign Risk
WWCB2B.COM's
clients and/or clients' vendor (on exports) transfer to WWCB2B.COM
the risk of payment by the foreign buyer.
- Alternative
Financing Versus Giving Away Equity in a Fast Growing
Company
WWCB2B.COM provides working
capital where banks can not because the company's
balance sheet or collateral will not support sufficient
borrowing. An equity placement would force the owners to
give away a high percentage of the company.
- Timing
Often
clients need a quick response in order to get or keep a
sale. WWCB2B.COM can quickly do
its due diligence and review the facts of the
transaction. There are no committees, lawyers or other
elements that slow the decision process down.
- Enhance
Profits
Clients
can grow more quickly by having the capital available to
do more business. Clients brokering goods can become
principals thus increasing their margins. Our clients
can expand their margins, save on various costs and
increase supplier credit extended to them.
- Disguise
our Client's Identity
Our
clients that are middlemen need transactions secured in
such a way that the end buyer and manufacturer do not
become acquainted. In these situations the end buyer
typically issues a letter of credit to our client, and
we issue a letter of credit to the manufacturer.
- Operational
Support
If
desired, WWCB2B.COM can, to a
great extent, become the international operations area
for a company, thereby allowing a cost savings and
providing expertise to international transactions.
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