What Is Purchase Finance
Purchase finance is great for companies to use that have to deliver goods to customers within a time limit; these are companies such as retailers, importers & exporters, manufacturers and wholesalers.
Purchase finance isn’t the cheapest form of finance, but it is extremely flexible and there for you when ever your business needs it. This type of lending doesn’t require that your goods have already been sold, the lender also wont take over your transaction by invoicing your customers and purchasing stock, you are still in full control.
If you are approved for purchase finance you will provide the company with the list of your suppliers and a deposit agreed on by you both. They will then pay the supplier so that you receive your goods on time.
The purchase finance company will also invoice your company costs for dealing with disbursements.
Not every business is eligible for purchase finance these include; new businesses, a company with CCJ’S and companies making a loss.