Import Finance

4. Financing Your Payments

There are several ways of financing payments.

4.1 You can use your sterling overdraft facility for small amounts.

4.2 For £100,000 or more, a fixed term commercial bill drawn on your bank and then discounted by the bank can be more cost-effective.

4.3 You can arrange financing in a foreign currency (including the euro), typically if you are being invoiced or have other expenditure in that currency.

• You need to manage your exchange rate risk.

4.4 For goods you plan to sell on, you may be able to arrange bank finance against the security of the stored goods.

4.5 If you use freight forwarders to handle delivery of the goods, you may be able to negotiate a credit line with them to cover their charges.