I've had to pay import duty upfront before the goods can even be sold

Why the timing is baked into how importing works

Customs authorities require duty and import VAT to be settled before goods are released, regardless of whether the company has sold them yet. For a business bringing in regular shipments, this means cash is committed to every consignment well before a single unit has been sold, on top of the cost of the goods themselves and freight.

The bigger and more frequent the shipments, the larger and more constant this upfront commitment becomes, which is why many established importers carry a standing working capital facility rather than treating each shipment as a one-off funding event.

Sizing the gap across the stock cycle

The real number to work out is more than the duty on one shipment; it's duty plus goods cost plus freight, held against however long it typically takes that stock to sell through and for customers to pay. A business that turns stock over in four weeks has a much shorter, smaller gap than one carrying slower-moving stock for several months.

Reviewing your actual stock-to-cash cycle, rather than assuming, is worth doing before deciding how much facility you need.

Structuring finance around shipment cycles

Because imports tend to be recurring, a revolving or repeatable short-term facility that can be drawn against each shipment and repaid as that stock sells through tends to work better than a single one-off loan — it matches the actual rhythm of the business rather than forcing you to reapply every time a container lands.

Credicorp assesses the trading company on its own numbers and import pattern, without requiring a personal guarantee from the director.

What to have ready

Recent import history (volumes, duty paid, typical sell-through time), supplier and customs documentation for the shipment in question, and management accounts showing the trading pattern. A clear picture of your stock-to-cash cycle is the single most useful thing you can bring.