Need funds to clear goods from customs? Let us help you

 In International Trade Finance, Purchase Order Finance

Summary of the deal:
1. Our client had more than a million dollars worth of Purchase Orders from a reputed retailer in Australia.
2. The goods were stuck in customs because the client was unable to pay the supplier.
3. Our client was paying thousands of dollars in container detention and demurrage charges.
4. AR Cash Flow helped with payment to the supplier, cleared the goods stuck in customs, and transported them to the customer’s warehouse.

Our client had secured a purchase order worth over a million dollars from one of the reputed retail giants in Australia. The PO was for thousands of bathroom basins to be imported from China to Australia in 14 shipments.

Given our client and the supplier have a close business relationship, the supplier agrees to ship the goods to Australia after receiving only partial payment. The remaining balance is paid once the goods arrive in the Australian port.

Our client funded the PO for the first shipment with his own funds. For the second shipment, however, they faced a cash flow shortage. Goods were ordered from the supplier after making partial payment but they struggled to finalise the balance of payment.

Banks and other lenders were reluctant to help him with his situation. The goods were already in the Australian port and the supplier was not releasing the shipping and commercial documents required to clear the goods from customs. As a result, our client was extremely frustrated having to pay thousands of dollars in container detention and demurrage charges for the goods stuck in customs.

That is when a broker introduced the lead to AR Cash Flow. AR Cash Flow quickly understood the scenario, structured the trade finance solution, and paid the supplier directly into their bank account in China. The goods were quickly cleared from Australian customs and directly transported to the customer’s warehouse within a day by our logistics partner.

AR Cash Flow’s flexible financing options allowed our client to fulfill the order they otherwise could not have completed due to cashflow challenges. AR Cash Flow’s financing also enabled our client to import another 11 shipments, enabling their business to expand rapidly.

If you are in a similar situation, we would love to help you.

Please contact Daniel on 0432 822 949 or the office on 02 8074 2674. Email [email protected]

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