Funding an overseas supplier payment before shipment

How do you verify the invoice and the beneficiary?

Confirm the invoice and the bank account it names through a contact you already trust before any money moves, because overseas payments are hard to recall.

Compare the proforma invoice with your purchase order line by line: quantities, unit price, currency, Incoterms and the supplier's legal name. Then check that the beneficiary name on the wire instructions matches the company on the invoice. If the bank details differ from the last order, treat it as a red flag and verify by a known channel, not by replying to the email that changed them.

A funder may also ask for the same invoice and payment instructions. Having them verified up front speeds the file. Our list of documents for opportunity funding shows what to pull together.

What are the deposit and balance terms?

Get the split in writing: a typical overseas order asks for a deposit at order and the balance before shipment or against shipping documents.

In the timeline the deposit is 30% of $48,000, which is $14,400, and the balance is 70%, which is $33,600. Ask whether the deposit is refundable, what happens if production slips, and whether the balance is due before shipping or when the goods are inspected. Terms vary from one supplier to the next and from one country to the next, so use your supplier's real terms.

Most owners pay the deposit from cash and request funding for the balance and freight, because the balance is the larger payment and the one that releases the goods. For related reading, see funding a supplier deposit and final balance.

How much does transit time change the plan?

Transit time is dead time: you have paid, the goods are on the water and nothing is selling, yet repayments may already have started.

The example allows 35 days at sea plus a few days to clear customs and reach your warehouse, with first sales around day 75. The first repayment lands on day 60, before the goods arrive. That is why the reserve line exists. Ask the freight forwarder for a written estimate that includes port delays, and add a buffer, because a delayed container pushes sales later while repayment dates stay put.

If the schedule looks tight, ask the funder whether a different repayment structure is available before you accept. Do not assume a delay will be forgiven.

How much cash is needed before the goods sell?

Add the deposit, any repayment due before first sales and the freight that is not funded: in the example the pre-sales requirement is $24,375 from your own cash.

That is the $14,400 deposit plus the $9,975 first repayment. Once sales start, 800 units bring in $30,400 in the first 30 days, enough to cover the second payment with room to spare. Across the full run, 2,400 units at $38 bring $91,200. Subtract the $52,400 landed cost and the $1,900 hypothetical funding cost and $36,900 remains before rent, payroll, marketing and returns.

That is a healthy picture only if the goods sell on schedule. Run a slower case, with sales starting 30 days later, and see whether you can still make payments. If not, shrink the order or fund less.

What does Prime do, and what does it not do?

Prime helps businesses get funded for the purchase itself; it does not issue letters of credit or other trade-finance instruments, and nothing on this page promises one.

The funder reviewing your file decides and sets the terms. Products commonly reviewed for an order like this include short-term working capital for inventory deals. A funder may ask to see the supplier invoice, your bank statements, a government-issued ID and a voided business check. Start the online application and describe the order, the payment dates and the expected arrival. You can also read about working capital for inventory purchases.

Updated October 17, 2026 · Prime Funding Now Funding Team