Australian businesses need the best equipment to ensure they retain high standards of productivity and service. Some of these supplies are only available from overseas; in other cases foreign manufacturers offer cost savings compared to domestic ones. This is why there is a thriving equipment import segment in Australia.
However, there are significant cash flow implications to buying from abroad: typically, a company may have to make an initial downpayment on its order upfront, and then settle the difference either immediately before shipment, or on proof of shipment. When the importing firm re-sells the equipment to a manufacturer, construction or agriculture business, for example, it will likely not get paid until a month or two after issuing the invoice along with the goods.
This is why specialist import finance is so useful – not just to companies making occasional overseas purchases – but to specialist importers too.
Funding Options to Import Equipment
Even the most profitable equipment import businesses will not necessarily be able to find the cash to meet a big order. If it doesn’t have the money in its account, a company ordering equipment from abroad will have to make specific funding arrangements, as it is unlikely to be offered terms by the seller.
Some companies will undoubtedly consider taking out a business loan to cover the purchase of equipment which they know can be profitably sold on. This will likely require some form of security and/or a credit history. It will also mean paying fees and interest for months and even years to come.
In many cases, specialist import finance will be a better option: funding designed specifically to plug the cash flow gap and eliminate the risks and cash flow problems associated with buying from abroad.
It Deals with the Logistics
Even if you don’t find working with foreign firms daunting, the additional checks, bureaucracy and logistics are an unwelcome distraction for a business’ management.
But with smart import finance, we can do all that for you. Not only will we arrange shipment of your supplies, but we’ll cover the cost of that too. Other forms of trade finance, such as letters of credit, don’t do this: they only offer enough funding to pay the actual supplier.
That leaves businesses having to spend time not only managing the transport and import process, but also finding the money to pay for these additional costs up-front.
OptiPay's Import Finance
Smart import finance, provided by a nimble fintech like OptiPay, can be very cost effective and allows companies to import equipment when needed, without committing to long term financing and the associated costs.
When you need to place an order with one of your foreign suppliers, OptiPay will pay the upfront costs directly and ensure the order is shipped. You can settle up with us on pre-agreed terms, usually 90 days later. By that time, you will likely have sold the equipment on at a handsome profit – allowing you to pay us back, along with a single, small pre-agreed fee.
Thanks to our easy-to-use fintech platform, importers can simply chose which orders they need us to pay. If you like, we can also take on any currency risks and even deal with the logistics. Our online system is very simple and gives you total control.
Obtain a Quote for Import Finance Today
OptiPay is a leading smart finance company and can provide your equipment import business with a competitive quote. For more information, fill out this form or call us on 1300 694 686.
Need Business Funding?
Note: OptiPay funding solutions are only suitable for businesses with annual revenues of $1m+ per annum.
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Here’s why Our Clients choose OptiPay
This is Paul, he is one of the directors of UVS, a labour-hire provider to the construction industry. Here’s what he has to say about how OptiPay was able to help his business grow and succeed. Contact an OptiPay expert today to see how we can help you.
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