Working Capital Solutions | Stock Finance

What It Is:

This funding solution provides you with upfront financing for any local or international stock/commodity procurement needs. The lend here is not subject to confirmed off-take, and the maximum duration of short term loans is 180 days.

Risks Attached:

  • Stock Finance solutions are seldom offered to clients and working capital funding is only subject to post performance debtors balances (Debtors Finance), thus providing suboptimal LTV% relevant to stock and debtor valuations.
  • The absence of Stock Finance solutions may lead to the inability of clients to timeously secure supplier discounts.
  • Not pairing FX Risk Management with suitable Stock Finance solutions results in increased Cost of Sales and suboptimal GP Margins.

Business Value Add

  • Provide capital and value against stock holding.
  • The ability to gear and leverage unfunded Foreign Debtor Balances.
  • Management and guaranteed enhancement of overall GP Margins.
  • Competitively priced facility.