Hypothetical example: landed-cost checklist for a 2,000-unit shipment at $24 per unit
| Line item | Source of the number | Amount | Paid from |
|---|---|---|---|
| Product cost (already paid) | Supplier invoice | $48,000 | Cash on hand |
| Ocean or air freight | Forwarder quote | $3,200 | Funding |
| Customs broker fee | Broker quote | $450 | Funding |
| Duty and import tax | Your own estimate (hypothetical figure shown) | $2,000 | Funding |
| Port and terminal handling | Forwarder quote | $600 | Funding |
| Delivery to your warehouse | Carrier quote | $900 | Funding |
| Cargo insurance | Insurer quote | $350 | Funding |
| Total landed charges | Sum of the six lines above | $7,500 | |
| Cushion (10% of charges) | Your own judgment | $750 | Funding |
| Amount to request | $7,500 plus $750 | $8,250 | |
| Landed cost per unit (2,000 units) | ($48,000 + $7,500) / 2,000 | $27.75 |
All figures are hypothetical. The duty and tax line is a placeholder: enter the estimate from your customs broker or accountant, not a number from this page.
How do you separate product cost from landed costs?
Product cost is what the supplier invoices you; landed cost is that figure plus everything it takes to get the goods into your warehouse and sellable.
In the checklist above, the product cost is $48,000 and the six landed charges add $7,500, so the real cost of the shipment is $55,500, or $27.75 a unit instead of $24.00. If you price your resale from the supplier invoice alone, your margin is overstated from day one.
Keep the two numbers on separate lines of your worksheet. The product cost may already be paid from cash. The landed charges are the part that often arrives as a surprise bill while the shipment sits at a port or carrier terminal.
Which charges should you quote one by one?
Quote every remaining charge in writing: freight, broker fee, duty and tax, terminal handling, delivery and insurance, each from the company that will bill it.
A single rounded guess is the usual source of a funding shortfall. Ask the forwarder what is included in the freight quote and what is billed separately, such as storage after the free days, chassis fees or inspection fees. Funders reviewing the file prefer itemized quotes to one lump estimate.
- Duty and import tax: classification and rates are set by your customs broker and the rules for your goods and country of origin. Enter the broker's estimate in your worksheet and ask your accountant how it is treated in your books.
- Freight and handling: get a written quote that lists what is and is not included.
- Delivery: confirm the dock appointment and any liftgate or unloading fee.
Add a cushion. The example uses 10% of charges, $750, because quotes move between booking and arrival.
What are the arrival and release deadlines?
Work backward from the date the goods are released, because carriers and terminals set free-time limits after which storage charges start and the shipment can be held.
Get three dates in writing: the estimated arrival, the last free day at the terminal or warehouse, and the date your broker needs duty and fees paid before release. Funders typically give a decision within 24 hours of a complete application, but funding time varies by product, so apply before the shipment lands, not after the first storage invoice.
If the paperwork is complete, the shipment moves. If a document is missing, such as a commercial invoice or packing list, release can stall while charges keep running. Our guide to paying an overseas supplier before shipment covers the earlier stage of the same purchase.
When does the money come back from sales?
Landed charges are repaid out of sales, so the question is how soon the goods can be listed or shipped to customers after release.
Estimate the days from release to first sale, then from first sale to cash in your account. A wholesale buyer on payment terms takes longer than a retail shelf. If your goods are for a busy season, count backward from that season so the shipment is on hand before it starts.
Short-term working capital for inventory deals is the product most often reviewed for a landed-cost gap, and wholesale distributors who buy abroad will recognize the pattern. Rate, term and payment schedule vary by product and by your business, so read the written offer before you accept.
What should you send with the application?
Send the supplier invoice, proof of payment, the itemized landed-cost quotes and the arrival date, because they show exactly what the funds will do.
- Supplier invoice and proof the product was paid
- Forwarder, broker and carrier quotes
- Bill of lading or tracking details, if you have them
- Recent business bank statements, government-issued ID and a voided business check
Larger requests may add tax returns or financial statements. When you are ready, start the online application, describe the shipment and name the release deadline. See also the working capital for inventory purchases page.
Frequently asked questions
What are landed costs?
Landed cost is the product price plus everything needed to deliver it to your door: freight, customs broker fees, duty and import tax, port handling, insurance and local delivery. It is the true cost per unit and the number your resale pricing should start from.
Can I get funding after I have already paid the supplier?
Yes, the request can be for the remaining charges only. Describe what is paid, what is still due and the date the shipment must be released. Prime helps businesses get funded; the funder that makes an offer reviews the file and sets the terms.
How do I estimate duty and tax?
Ask your customs broker for a written estimate based on your goods and country of origin, and ask your accountant how it fits your books. Do not rely on a general rate you found online. Enter the broker's number in your worksheet.
What if the shipment is already at the port?
Send the arrival date, the last free day and the broker's release requirements with the application. Those dates show how soon the funds are needed, and a complete file gives the funder what it needs for a decision.
Does checking my options affect my credit score?
No. Checking options does not affect your personal credit score, and there is no obligation to accept an offer once you receive it.
Describe your purchase and deadline
Tell us what is paid, what is still due and when the shipment must be released.
Updated October 17, 2026 · Prime Funding Now Funding Team