Purchase of goods financing
You urgently need new goods or means of production, but do not want to invest your own money or are currently not liquid? Then financing for the purchase of goods (= finetrading) could be the ideal solution for you.
BENEFIT FROM THE ADVANTAGES OF PURCHASING GOODS FINANCING
Growth: You can increase your sales by financing additional projects.
Flexibility: You can arrange the repayment of your purchases flexibly and receive payment terms of up to 120 days.
Price reduction: Since the finetrader pays for the goods in full immediately, you receive discounts of up to 2%.
Image gain: Your supplier benefits from the reliable payment of your finetrader, whereby you establish yourself as a reliable trading partner.
Independence: You reduce the dependency on your house bank by using an additional financier.
Win-win situation for companies and suppliers
By paying the supplier invoice immediately, the customer can claim special conditions and discounts. The resulting price reduction (better purchase prices) is often sufficient to completely cover the small additional costs for the finetrading provider in the first month. With the immediate payment, the entrepreneur not only improves his relationship with the supplier, but also receives his own liquidity. The money that he would otherwise have needed to buy goods can now be invested in other things.
The entrepreneur gains time and creates completely new room for maneuver that would otherwise not be available to him. Ideally, the goods have already been sold by the time the payment is made to the finetrader. There is no dead stock, the balance improves . The supplier is also happy, because the process offers him delivery security, increases his sales volume and improves his own rating with optimized key figures in the cash flow . He no longer has any delays in payment and saves himself time-consuming and costly dunning procedures. Its credit risk is done by the provider of the goods purchase financing.
THE PROCESS: THIS IS HOW FINETRADING WORKS
Presentation in 4 steps
1. You hire a fine trader
You set up a goods purchasing line at a finetrader that you can use flexibly. The line usually has a term of two years.
2. The finetrader buys the goods from your supplier
You instruct the finetrader to buy the goods you want. Since the finetrader pays for the goods in full immediately, you receive discounts (price reductions) of up to 2%.
3. The goods will be delivered to you immediately
The finetrader only acts as a middleman so that the goods can be delivered to you immediately by the supplier.
4. You have a payment term of up to 120 days
The finetrader grants you an extended payment term of up to 120 days. For the service, you pay the finetrader a fee, which is fixed depending on the model or increases with the duration of the repayment.
FINANCING THE PURCHASE OF GOODS: AN ATTRACTIVE ALTERNATIVE TO BANK LOANS
This type of pre-financing of goods also makes your company independent of the allocation lines of your house bank. The usual bank collateral does not apply, which makes the financing of the purchase of goods an attractive alternative to the current account credit . When purchasing goods or operating resources, the entrepreneur no longer has to allow a cash discount or other price reductions to expire due to a poor liquidity situation. This funding for the companies often even cheaper than if there was a bank loan would have taken.
Strengthen relationships with your trading partners
As usual, you take on the negotiations with your supplier yourself, including control over the quality of the goods – your middleman will finance the purchase. This gives you more time to increase your liquidity by having a longer period of time available for production, as well as a strategic time window that you can use to optimize your product. Financing for medium-sized companies has never been so carefree. A framework contract and the examination of the documents form the legal framework for the financing. If the outcome is positive, you simply agree the payment modalities with your supplier and your pre-financing of the goods is already done. Without having to worry about the necessary liquidity in advance, you can start production immediately.