We are a HK registered trading co. with a rep office in a major city in China. We have manufacturers for a product that has very good demand as well as buyers who are keen on purchasing from us. However we are facing two main financing problems:
1. Many of our buyers want to buy on 60 Days LC.
2. Most of our buyers pay 30% upfront and balance against BL Copy. This means, we have to pay the manufacturer first, get possession of goods and only get paid once goods are on-board. This can mean a time lag of about 10 days between paying upfront and getting payment. We can offered to do this, when we only a few orders on hand, but when we have multiple orders due to go out at the same time, we get stuck in a serious cash crunch.
I was wondering, what sort of finance options, do I have available as a HK based company and what sort of interests should I expect to pay? I would appreciate any help on this matter.