XYZ Limited is an importer and wholesaler of shoes. The business sells ladies’ shoes to large retail chains. It has a summer and winter programme.
We assist this customer in the following ways:
- We source products from manufacturers in China.
- We negotiate bulk discounts with these suppliers.
- The customer then presents to retail chains; the chains place a firm order on our customer.
- We then arrange the order with the factory and pay a deposit so that production can commence.
- Next, we ensure that the currency risk for converting USD (the buying currency) to the customer’s trading currency of, for example, pounds sterling is covered for the entire duration of the contract.
- Once goods are prepared, the supplier invoices us and we pay for the goods.
- We arrange transport insurance.
- We arrange for freight and shipment in our name.
- On arrival of the goods, we pay VAT & Duty.
- We deliver to the customer at their request and invoice for the cost of the goods and services and our margin.
- On the due date, we are paid.