Industries · Trading
Finance advisory for trading and distribution companies in the UAE
Traders work on thin margins, so small costs decide the result: freight, duty, insurance, handling, credit days and currency moves. We help trading companies see their true landed cost and margin by customer and product, and free up the cash tied in stock and receivables.
Where do traders usually lose margin?
- Incomplete landed costFreight, duty, insurance and handling left out of the cost used for pricing.
- Currency exposurePurchases in EUR and other non-USD currencies priced without a view of exchange risk.
- Hidden unprofitable customersLarge customers with heavy discounts, long credit and high service costs.
- Cash tied upStock and receivables growing faster than sales, funded by the bank.
How does Valorin help trading companies?
- Landed cost modelPurchase price, freight, insurance, duty, non-recoverable VAT, port handling, transport and storage, by SKU.
- Currency exposure viewOpen orders by currency, existing hedges and the exposure that needs a decision.
- Customer and product marginsGross profit by customer, product line and supplier, after the costs to serve them.
- Working capitalCollection, stock and payment days measured against your own policy.
Hypothetical example
- An importer buys goods for AED 100,000 and sells them for AED 120,000, a 20% margin on paper.
- Freight, duty, handling and storage add about AED 15,000 that the pricing sheet ignored.
- After those costs the real margin is around 4%, so prices and terms are renegotiated.
An illustration, not a client result.
Frequently asked questions
Which costs should be in a trader's landed cost?
Purchase price plus freight, insurance, customs duty, clearing and handling, and the cost of the credit days you give and take. Without them, margin reports overstate what each product really earns.
How can a trading company free up working capital?
Shorten customer credit where you can, review slow-moving stock, and match supplier terms to the time it takes you to sell and collect. Measuring days of stock, receivables and payables each month shows where cash is tied up.
Does e-invoicing apply to traders below AED 50 million?
Yes, if the business is in scope. In-scope businesses below AED 50 million must appoint an ASP by 31 March 2027 and implement the system by 1 July 2027.
Muhammad Imran, ACMA
Founder and Managing Director · 20+ years in finance
You work directly with the founder, from the first meeting to delivery. Valorin Finance & Advisory LLC, licence no. 2644595.01. About us
See your real margins
Tell us what you import and sell, and how you price it today. We'll show you where margin leaks.
General information only, not legal or tax advice.
Valorin is an independent advisory firm, not affiliated with the FTA or MoF.