Product Overview: Purchase Financing
Purchasing Financing
Would you like to finance your purchases?
We’ll help you find the right financing for your purchase.
Fine Trading.
A better way to finance your purchases.
For many companies, growth also means increasing purchasing volumes, which often come with new challenges:
For example, when goods are purchased in China or other Asian countries, payment terms are often very short or payment in advance is even required, while transportation routes and import processes into Germany are correspondingly long. In such cases, purchase financing—that is, a financing arrangement between the company and one or more suppliers—can provide a solution.
Purchasing financing enables companies to pre-finance purchases with short payment terms or upfront payments, so that these can be paid for by taking advantage of discounts, for example. At the same time—depending on the business model—the goods can be resold with a payment term. This keeps the company’s own supply chains flexible, and the company benefits from predictable liquidity without having to draw on existing credit lines.
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Traditional purchase financing has undergone significant changes in recent years. The product as it was originally introduced has disappeared from the market in its original form. However, there are innovative solutions available to continue financing purchases. These new solutions continue to be in high demand, particularly in Asia, where payment in advance remains the norm. Implementing these solutions requires in-depth knowledge of international trade, which we have built up over the years.
However, due to numerous negative experiences on the part of providers—resulting from high insolvency rates—traditional purchase financing is becoming increasingly rare. Instead, interesting new approaches have emerged in the market that can address many of the challenges faced in the past.
For companies today, it is more important than ever to have a thorough understanding of the available reinsurance options. Our job is to analyze in advance which options are actually viable for you. Thanks to our close business relationships with providers—whom we also actively support in other areas—we can offer you well-informed recommendations.
Things to Know About Purchase Financing.
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