As a variation to traditional trade finance in some cases a company may not have a committed customer order but can demonstrate the saleability of the product.

The opportunity to import product in price competitive bulk order to be held under a financier’s ownership and in their warehouse but subject to call-off can be attractive. Extended credit is effectively made available, bulk purchasing discounts can be secured and an outsourced warehouse and logistics facility is provided.

The company can focus on the essentials of the deal and not on the logistics of holding and delivering goods.

This approach can prove very popular in business to business wholesaling of leisure, electronic and clothing products.

Pricing rates and transaction considerations will be similar to those of traditional and trade finance.