Import finance
A line of credit of up to 180 days for finished goods from overseas or domestic suppliers, usually linked to invoice finance. Letter of credit or telegraphic transfer, then repayment from debtor finance once goods are received.
- Range
- By shipment
- Term
- Up to 180 days
- Family
- trade
- Search
- Full market, one file
At a glance
- Up to 180 days
- Linked to invoice finance
- LC or TT
- Finished goods
How it works
- 1A line of credit of up to 180 days for finished goods from overseas or domestic suppliers.
- 2Usually linked to invoice finance: the import bill is repaid from debtor finance once goods are sold on.
- 3Payment to the supplier can be by letter of credit or telegraphic transfer.
- 4Once goods clear, you repay on agreed terms from customer collections.
Who it’s for
- Importers of finished goods who need to pay suppliers before they are paid by their own customers
- Businesses that already have, or will take, an invoice-finance facility
Good to know
The goal is to defer purchasing costs until you realise a profit from sales.
Combined with an LC it gives the supplier comfort and you cash-flow cover.
One application with QED searches the full market. That saves you running the same file around several lenders, and it avoids multiple credit searches on the business and directors. A hard search is only placed when you proceed with a chosen lender.
Documents QED will ask for
Same list as the attach-files section on the website application. Tick what you have when you apply; email the rest.
- Last published accounts (full accounts, not abbreviated)
- Latest management accounts if year-end is stale
- Last 3 months’ business bank statements
- Pro-forma invoice
- Purchase order
- Commercial invoice
- Contract of sale
- Transport document / bill of lading (if shipped)
- Buyer and supplier names and addresses
FAQ
Drawn from qedfinance.com and the way the UK market actually underwrites these facilities.
Do I need invoice finance as well?
Often yes — that is how the import bill is repaid. If you do not have a facility, the application will look at putting both in place.
What is import finance?
A line of up to 180 days for finished goods from overseas or domestic suppliers, usually linked to invoice finance. The goal is to defer purchasing costs until you realise a profit from sales.
How does it work, simply?
You apply. Once approved, an LC or telegraphic transfer is initiated and the seller ships. The seller is paid; an import bill is created. When goods clear, the bill is repaid from debtor-finance proceeds. You then clear the invoice line on agreed terms.
Why combine it with a letter of credit?
The LC protects the supplier and you; import finance covers the cash-flow gap until your own customers pay. Cost and repayment terms vary by institution.
Why not just pay by telegraphic transfer?
A plain TT is fast but puts all risk on the buyer — you may pay for goods that never ship or fail quality. An open account does the opposite and loads the exporter. Trade finance is the middle path.
Can products be combined?
Yes. Import finance is often paired with a letter of credit and then repaid from invoice finance once goods are sold on.
Ready to discuss this facility?
Start a short application and QED will help you compare the available market.
Start an applicationQED is a broker, not a lender. A low credit score can limit options with some houses; a search with us does not place a hard search on the business or directors until you proceed with a chosen lender.