Germany imports more than $1.2 trillion worth of goods every year with the main products being machinery, commodities, chemicals, vehicles and agricultural products. Domestic demand is very strong and remains robust despite the ongoing slowdown in China, to which it is heavily exposed.
As the largest economy in Europe and the fifth largest by GDP in the world Germany is a central pillar of the European Union. This is reflected in their trade practices with more than 50% of imports coming from the EU, while other main trading partners include China, the United States, Switzerland and Russia.
Exporting to Germany? Contact our local experts
Stock finance is a revolving facility which alternative lenders offer - it enables SMEs to buy stock supplies and can help ease working capital problems.
Generally, a trade financier will fund most of the cost of the product, including charges (e.g. shipping costs).
If you're an organisation importing or exporting goods from or to other countries, then a trade finance facility would help you to fund this through offering a letter of credit (LC) or some form of cash advance.
If you’re looking to export goods to other markets, you may need export finance, which is a commercial agreement between you (the exporter), and the foreign importer. A non-bank lender will advance you the cost of producing the stock that you’re exporting (as a debt product), either once you have shipped the goods, or before you have manufactured them. Once your foreign importer has received the stock supplies and pays you for the import, you will repay the advance loan from the lender over an agreed period of time.
Read the TFG Exporters Guide here.
Importing from Germany? Contact our local experts