Import finance is a business investment that helps companies of all sizes save money by partnering with foreign suppliers. Import finance is different from other types of corporate financing because it is meant to reduce the risks and cash flow issues that come with buying products and materials from outside the country. Here are the reasons why import financing is better than other financing options.
Improve Cash Flow
It cannot be denied that many small businesses these days are having trouble with their cash flow. Simply because they have to pay their suppliers for the goods before they even get sent to you. Import financing will ensure that you have a stable cash flow. You will know what you need to pay for and when.
Reduce Importing Risks
Transacting business abroad and with people that you don’t know much about can be daunting, you don’t have anyone on the ground to check items before you pay for them. Moreover, currency fluctuations, not getting the value of what you paid for, and quality control, are just some of the many risks that you have to take when importing products or materials from another country.
Still, many are willing to take the risks. However, this is one of the reasons why new importers can’t have enough cash flow transacting with international suppliers. With import financing, you will have a buffer against all these risks involved.
No Credit Record Required
Another major advantage of considering import finance is that it doesn’t require importers to have a credit record. You don’t even need to take a bank loan. Import finance does not request a loan collateral. Instead, it assumes you have orders to fulfill and will assure that you have enough funds to give you the capability to pay for products you ordered from abroad. Import financing is always adjusted to a company’s individual situation.
Corporate Tax Loan At DBS
Import financing offers with DBS Corporate Tax Loan are specifically tailored for SMEs. It’s flexible, collateral-free, and very convenient. With a DBS Corporate Tax Loan, they have financing solutions that are tailored to your company’s needs.
For corporate tax loans, you can borrow up to 100% of your revenue tax. This is in fact payable depending on the company’s tax demand note. This way, you are still able to meet your cash flow during tax season while keeping your business afloat by having enough funds that you need.
