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• 25 Nov

  Trade Financing And Factoring For A Womenswear Designer

  In this case study, we arranged trade financing and factoring for a London-based womenswear designer to pay international suppliers and enable growth.

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  Trade Financing And Factoring For A Womenswear Designer

  This case study concerns a London-based womenswear designer specialising in women's fashion for UK high-street retailers.

  The Client's Challenges

  The challenge for this client was that they needed cash flow support to pay their international suppliers to import the women's wear garments.

  They needed to make these payments for the clothes they were importing whilst they waited for their customers, UK retailers to pay them.

  International suppliers often require large upfront payments to put goods in transit to the UK. Buyers can then face delayed payments from their retail buyers, which impacts their cash flow.

  Often smaller importers can miss out on lucrative growth opportunities as their working capital on hand doesn't stretch to funding these larger orders.

  Our Solutions For This Womenswear Designer

  FundInvoice was able to present an ideal solution to this womenswear designer. The combination of trade financing to pay the international supplier and recourse factoring to pay back that finance granted an even longer repayment cycle for our client.

  Financing Implementation Process

  After a short initial consultation to understand the designer's financial needs, we identified a provider that would be well-placed to support them.

  We connected this client with a small, lesser-known UK-based trade financing house that was able to assist them. They put in place the trade financing, which was connected to a factoring facility.

  The latter would give the client immediate access to the cash from their sales invoices as soon as they were raised to UK retailers. This cash can repay the trade facility and create an extended credit period for our client.

  UK Importing Process Support

  If you need help on the process of importing into the UK see the UK Government's guidance: Importing Into The UK

  Results And Impact

  Establishing these facilities has created the working capital our client needed to pay their international suppliers and enable their growth.

  Do You Have Similar Issues?

  If you have similar issues, even if you are in a different line of business, get in touch and we can help you find similar support regardless of the size of your company.

  Call us on 03330 113622 for a confidential review of the options for your company.

  By Glenn Blackman