2018   Walt Capital Pty Ltd Trustee of the Walt Capital Trust T/A Hudson Gray Financial Services 

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Walt Distributions Pty Ltd T/A Hudson Gray Home Loans

 

Contact Hudson Gray Financial Services  1300 761 474 Australia

Cash Flow Strategies Importers Should Consider

November 30, 2016

Many Importers are masters at juggling cash flow pressures.

Firstly, when ordering goods from an offshore supplier, upfront payment is usually required upon ordering of the stock. This marks the first outflow of capital.

The shipment then gets made up and dispatched.

When the shipment eventually reach Australian ports a further 10% GST liability is added to the cash outflow tally.

The Importer can now deploy the shipment as intended.

 

Consider Creditor Finance in this instance: An order gets placed to an offshore supplier that demands upfront payment. This is where Creditor Finance steps in. The Finance Company pays the supplier direct which means the shipment can bemade up and dispatched.

Once the stock reaches the local ports the ATO requires a 10% GST Import Duty. This too could be financed via Creditor Finance.

Repayment of the financed transactions is theoretically pushed out over a period of time. This allows the importer to stay in a positive cash flow position up until the goods are on-sold or used as intended.

Creditor Finance facilities are available as an unsecured facilities which means no security is required to set up other than signing a guarantee.

 

www.hudsonGRAY.com       1300 761 474

 

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