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Receivable financing agreements for UK-based companies engaged in importing goods from the Chinese silk industry must satisfy the trade stipulations and needs of both countries and trade environments. China has a long and successful history of textiles manufacturing, and fine silks are a major area of the Chinese textiles exporting business. Some international receivables factors offer contracts that require product deliveries to be held in US ports or airline terminals until the manufacturer in China has received payment for these goods. Others require payment for products on the shipment date. Some factors now offer financing plans arranging for final payment upon product delivery to the final destination for reliable, long-term customers.

What are the special financial concerns and needs of UK importers of Chinese silks?

China has a long and illustrious history of manufacturing and exporting fine quality silks for sale in the international market. In the United Kingdom, the wide demand for Chinese silks involves silk garments and accessories, tapestries, linens, draperies and bulk silk fabrics for sale throughout the country. Because of the delicate nature of many of these silk shipments, special handling and transport requirements often result in high expense rates for UK importing and sales companies when purchasing these goods. Some of the major financial concerns of these silk importers include:

  • Extra Expenses from Global Shipping Requirements. – When ordering shipments of delicate silk fabrics and products from China, UK importers must pay the additional expenses associated with insuring safe shipment and delivery of these goods. Insurance costs are often high for transporting fine quality fabrics. Whether silks are shipped via commercial shipping lines or aircraft, they must be carefully packed in moisture resistant containers that also protect fabrics from extreme changes in temperature. Importing taxes along with port and air terminal handling fees for these shipments are also often higher on these goods than some other global products for the US consumer marketplace.
  • Greater Costs for Warehousing, Haulage and Other Ground Transport. – Once silk shipments from China reach ports and airline terminals in the UK, they must be carefully transported by ground to warehouses for distribution. Lories and railroad cars used for transporting silk deliveries from initial arrival points to wholesale and retail warehouses or store locations must be climate-controlled and suitable for carrying delicate merchandise. Destination warehouses and inventory storage areas also must be clean with moderate temperatures and protection from moisture damage. All of these necessary ground transport and storage precautions for fine fabric protection are costly to the UK importing company.
  • Expenses of Initial Silk Imports Inspections. – Upon their initial arrival in shipping ports or airline terminals, global orders of silk fabrics and products must undergo careful inspections for damage control, defective or missing merchandise and any extraneous materials that might be included in packed containers. These inspection measures for new arrivals of international goods must all be paid for by the UK importing company involved. Even when individual inspection costs are moderate, a series of such inspections can become costly.

How can financing from a global factor alleviate financial concerns of UK silk importers?

By engaging the financial advice and receivables factoring services of a global factor, UK companies that import Chinese silk fabrics and products can stabilize and enhance their business operations in several ways, such as:

  • Gain Financial Coverage for International Shipments. – Factors providing receivable financing services to UK importers of Chinese silks enable these importing companies to accept global shipments and the additional costs involved without fear of overspending and possibly going into serious debt. In addition, potential budgetary problems resulting from delayed payments for their purchases of these international products are eliminated through regular working capital advancements from the factoring agent.
  • Receive Expense Coverage for Ground Transport and Storage. – Factors for silk importing companies in the United Kingdom include financial coverage in their receivables financing agreements to pay for the necessary care crucial to safe domestic ground transport for silk products. They provide coverage for the expense of product delivery to distribution warehouses and merchant storage locations as needed by the importers.
  • Receive Expense Coverage for Point of Arrival Product Inspections. – Factors for Chinese silk importers provide financial coverage through receivables factoring for costs incurred upon initial shipment arrivals. Whether imported silk products first arrive at UK shipping docks or commercial airline terminals, receivables financing services from the importer’s factor pay the costs of these inspections.

Receivables financing for UK importers of Chinese silk fabrics and products is essential for coverage of the ongoing expenses of importing, distributing and storing these delicate silk shipments for sale in the consumer marketplace. Factors providing this vital A/R funding are extremely important to the continued success of importers of fine quality Chinese silks and for ongoing sales of this specialized merchandise throughout the United Kingdom.