Trade Finance
Trade Credit
Mitigate risk and trade strategically
There are several trade instruments available to companies trading at home and abroad. By utilizing various forms of letter of credit, letter of guarantee and credit insurance, we are able to structure transactions that allow our clients to mitigate risk and gain more control in commercial transactions.
Letter of credit, letter of guarantee and credit insurance are financial instruments used in domestic and international trading. These instruments are typically offered through banks, private finance companies and insurance companies.
There are many benefits to trade credit instruments:
- Increase sales by extending credit with accounts receivable insurance
- Utilize letter of credit instruments to pay overseas suppliers
- Utilize letter of guarantee instruments to guarantee supplier credit
- Increase import/export trade while mitigating risk
" We work with many banks and trade finance companies that are aggressively pursing transactions. Many of our clients, companies just like yours, can utilize the instruments often only available to large companies with sophisticated credit departments. "
Expand your sales NOW, and gain the the peace of mind your company needs to grow.
Supply Chain Financing
Finance your accounts payable
Supply Chain Finance allows companies to purchase inventory on extended terms from its suppliers and often receive early payment discounts. Banks and supply chain finance companies pay suppliers directly and then collect from you at the maturity date. We have experience in putting together supply chain finance programs as part of an overall supply chain management program.
Supply chain financing is typically an add on to an existing asset based or cash flow working capital line of credit.
There are many benefits to supply chain management facilities:
- Financing accounts payable fees up working capital for expansion
- Maturity periods from 90 days to 360.
- You will receive the working capital you need without giving up equity
- Gives you the confidence to fulfill larger contracts
" We work with many banks and well-capitalized lenders that are aggressively lending. Many of our clients, companies just like yours, can receive the working capital they need even in today’s hard economic times. "
Turn your receivables into cash NOW, and gain the working capital and the peace of mind your company needs to succeed.
Contract Finance
Generate working capital to fulfill contracts
Companies that have been awarded a contract and need funding to complete the project are good candidates for contract finance. We specialize in generating loans for small businesses that do not have access to traditional financing sources. Working with us you gain a financial partner who understands your needs and is vested in your success.
While the immediate collateral for this type of business lending is the contract, contract finance companies will typically want all assets as collateral and control of the incoming cash.
There are many benefits to this type of business lending:
- Your cash flow is directly tied to your sales and as your business grows so will the available capital
- You will receive the working capital you need without giving up equity
- Grow your business without taking on long term debt
- Gives you the confidence to fulfill larger contracts
" We work with many well-capitalized lenders that are aggressively lending. Many of our clients, companies just like yours, can receive the working capital they need even in today’s hard economic times. "
Turn your receivables into cash NOW, and gain the working capital and the peace of mind your company needs to succeed.
Purchase Order Finance
Has your company finally landed that dream order, but lacks the capital to pay suppliers in order to fulfill it?
We can help you fund your orders through Purchase order finance. Purchase order finance or PO finance programs pay your suppliers for goods that you have open purchase orders for.
PO finance can work in tandem with receivable financing and allows you to pay your suppliers without depleting your cash reserves.
There are many benefits to using PO finance:
- PO Finance allows you to fulfill orders that exceed your current financial capabilities
- You can fund up to 100% of the cost of goods with PO finance
- You can fund 100% of your manufacturing or distribution cycle, not just part of it
- Fund both domestic and international orders
- Improve your competitive edge among customers and suppliers
All you need is a PO from a credit worthy commercial or government client to get started.
Production Finance
Turn your purchase orders into cash flow
If you have purchase orders from credit worthy customers and need money to buy components and cover labor, production financing may be the right option. Financial Capital Resource has experience structuring production finance transactions, sometimes utilizing multiple lenders to fund a transaction.
Production loans are collateralized by the purchase order presented for funding and all other business assets. Production finance companies will often work with a factor to cover the credit risk.
There are many benefits to these types of production loans:
- You will receive the working capital you need without giving up equity
- Gives you the confidence to fulfill larger contracts
- Cover overhead costs
- Take advantage of volume discounts