Import Finance
Importer Working Capital Stack
Importers do not “need more capital” in the abstract. They need capital at the right point in the cash conversion cycle, with controls that match how goods and cash actually move.
If you are choosing tools, review trade finance instruments
and start with the real underwriting baseline in trade finance.
1) The Stack, From Earliest Cash Need to Latest
The working capital stack is the sequence of facilities you use as risk reduces: supplier payment risk, in transit risk, warehousing risk, then receivable risk.
2) The Four Layers Most Importers Cycle Through
| Layer |
What it funds |
| Supplier payment layer |
Deposits, milestones, and final supplier payments under controlled workflows. |
| In transit layer |
Working capital while goods are on the water and not yet eligible inventory. |
| Inventory layer |
Liquidity against eligible inventory with reporting and control requirements. |
| Receivables layer |
Liquidity against eligible AR, often the cheapest and cleanest layer when customers pay reliably. |
3) Borrowing Base Reality
Most importer facilities are borrowing base driven. Your headline facility size is less important than your availability after reserves, ineligibles, and concentration limits.
Common ineligibles
- Old AR past agreed aging thresholds
- Related party receivables
- Inventory with poor turn or unclear valuation
- Foreign AR where collections and legal remedies are weak
Common reserves
- Returns and chargebacks reserve
- Concentration reserve on a single customer
- Freight and duty reserve if unpaid
- Inventory obsolescence reserve
4) Controls That Make Facilities Bankable
Controls are not cosmetic. They are the reason you get advance rates.
- 3PL reporting, cycle counts, and audit rights
- Borrowing base certificates and field exams where required
- Cash dominion or controlled collections in higher risk files
- Insurance and loss payee requirements
5) How Financely Helps Importers Build the Stack
We structure the capital stack around your trade flow and controls, then run a lender process to produce written term sheets.
Start with How It Works
and submit your file.
Get Working Capital Terms for Import Trade Flow
Send your inventory and AR reports, supplier terms, customer terms, and a short description of how goods move from factory to 3PL to customer.
We revert with a structure recommendation and term sheet path.
Frequently Asked Questions
What is the difference between facility size and availability?
Facility size is the cap. Availability is what you can draw today after borrowing base, reserves, and ineligibles.
How do lenders value inventory for borrowing base purposes?
Valuation is typically conservative and tied to cost or NOLV concepts, net of reserves and eligibility limits.
What is cash dominion and when is it used?
Cash dominion means collections flow into a controlled account. It is used when risk is higher or controls are needed to protect collateral.
Can an importer combine inventory and receivables in one revolver?
Yes, many borrowing base facilities include both, with separate eligibility rules and advance rates.
Why do lenders care about 3PL and warehouse reporting?
Because it is the audit trail for inventory existence, movement, shrink, and availability calculations.
How do chargebacks and returns affect importer credit terms?
They reduce eligible AR and increase reserves. If returns are volatile, advance rates and pricing usually worsen.