iBanFirst launches financing solution for importing companies

12 February 2019

iBanFirst lance une solution de financement pour les entreprises importatrices 2

By providing any company with access to cash flow facilities, iBanFirst reaffirms itself as a unified financial platform that supports the payment, exchange and financing of foreign currency invoices.

Paris, 12 February 2019 - iBanFirst, the financial services platform for companies with international operations, is launching a unique financing solution for importing companies. By allowing access to this facility from its online payment platform, iBanFirst integrates and simplifies a typically complex process.

Objective: to prevent companies from missing out on growth opportunities due to cash flow problems.

Importing VSEs and SMEs are often subject to cash flow pressures when they need to pay their suppliers abroad before they receive the cash inflows associated with their imports. This constraint negatively impacts the growth of their business. There are many reasons why companies resort to credit solutions, including negotiating a discount with a supplier, paying a deposit, anticipating production and inventory management periods and responding to urgent orders.

Even when they are supported by banks, companies struggle to access suitable offers, navigating between red tape, long delays and contact persons who are sometimes difficult to reach.

 

Cash flow optimisation and business growth financing are the major challenges addressed by iBanFirst's "Import Lending" service.

Implementation time: the Import Lending service is activated within two weeks - compared to an average of three to six months at a traditional bank.

Simplicity and security: thanks to the complete integration of Import Lending with the iBanFirst platform, lending is coupled with the triggering of payments to suppliers, in their local currency, at the best rate, quickly and securely.

The ability to pay international suppliers on time, or even in advance, allows the company to build a relationship of trust and to obtain more favourable conditions.

The following examples illustrate the possibilities provided by this new service:

Example 1: The company has a payment term of 150 days with its English supplier upon receipt of the goods. iBanFirst advances the funds to be paid in 150 days in order to pay its supplier in cash and negotiate a discount.

Example 2: The company imports its goods from China, paying a 30% deposit to its Chinese supplier and the balance upon receipt of the goods 60 days later. iBanFirst advances the funds to pay the deposit.

Example 3: The company imports its goods from Japan and pays its Japanese supplier upon receipt of the goods. It then needs 30 days to make its finished products, followed by 70 days to sell its stocks. The company thus experiences cash flow stress over a period of 100 days. iBanFirst advances the funds paid in 100 days.

Example 4: The company importing its goods from the United States receives an unexpected order from one of its customers for delivery within 90 days. Its bank financing is at its maximum capacity and the usual processing time for a credit line increase application at its bank is 3 months. iBanFirst provides the additional financing needed to avoid missing this opportunity.

Pierre-Antoine Dusoulier, founder of iBanFirst said: "The user experience has always been our focus. The integration of Import Lending completes our unified financial services platform by offering our client companies a service that is essential to their international development."

The launch of this new financial service is part of the expansion of iBanFirst's approval: the "4[1] service" of the latest European Payment Services Directive (PSD2) allows iBanFirst to offer lines of credit associated with a payment.

[1] Annex 1 of EU Directive 2015/2366