Import Finance refers to funding solutions provided to importers to pay for goods purchased from international suppliers.
How It Works:
- The importer places an order.
- A lender provides financing support.
- Payment is made to the supplier.
- Goods are shipped and received.
- The importer repays the lender as per agreed terms.
Benefits:
- Improves working capital
- Enables timely procurement
- Supports business growth
- Reduces cash flow pressure
Example:
A business uses import finance to pay a foreign supplier and repays the amount after selling the goods locally.