PMF Build the landed-cost number first
Combine the goods, freight, insurance, applicable duties, customs handling and delivery to the final warehouse or customer. Use current quotes from the parties handling the shipment. Mark which charges are estimates and when they become payable. A request based only on the supplier price can leave the goods funded but the delivery unfinished.
Finance the part of the cycle you actually control
A confirmed customer order, stock purchased for general resale and an invoice after delivery each create a different funding conversation. Show whether the customer can cancel, how acceptance works and when payment becomes due. Include a delay case for shipment or collection, because the business must continue paying ordinary expenses while goods are in transit.
Shipment funding checklist
- Supplier agreement, payment terms and order confirmation.
- A cost breakdown using the transaction’s actual shipping terms.
- Transport and handling quotes with expiration dates where relevant.
- Customer order details and the remaining obligations before invoicing.
- Cash forecast through final collection, not just shipment arrival.
The inventory is paid for, but delivery still needs cash
Illustrative planning example. A distributor prepays a supplier and expects to collect after customer delivery. Freight and local handling fall due before that collection. Adding those dates to the forecast reveals a separate cash requirement that the original goods budget missed, allowing the financing request to reflect the complete transaction.
Local business resource
Long Beach BizCare provides a starting point for local business resources, financing information and technical assistance. Long Beach business resources and assistance.
Questions business owners ask
Can I use a standard percentage for duties and shipping?
Use the current goods classification, origin, shipping terms and quotes for your transaction. A freight or customs professional can help establish those amounts. An old percentage may distort both margin and the amount the business needs.
Where does invoice financing enter the picture?
Usually after the relevant invoice exists and the transaction meets the provider’s requirements. Goods still in transit, unfulfilled orders and disputed deliveries need separate consideration. Explain the precise stage before choosing a financing route.