Funding a Business Through Shipping and Customs Delays UK: Working Capital, Costs and Financing Options
Shipping and customs delays can create serious cash-flow problems for UK businesses, especially when substantial amounts of money have already been paid to overseas suppliers but the goods have not arrived, cleared customs or become available for sale.
An importer might have £80,000 tied up in a shipment delayed at a UK port. A wholesaler could be waiting for stock needed to fulfil confirmed customer orders. A manufacturer may be unable to complete production because essential components have not cleared customs.
In each situation, the business may need additional working capital to cover payroll, supplier payments, freight charges, customs expenses and normal operating costs.
UK businesses affected by shipping and customs delays may be able to obtain working capital loans, revolving credit facilities, import finance, inventory-backed lending or other commercial funding, subject to lender eligibility and repayment affordability.
However, the most suitable solution depends on why the shipment is delayed, whether the goods can legally be released, when the company expects to receive customer payments and how much additional funding is genuinely required.
Financing cannot resolve a missing import licence, customs compliance failure or other legal restriction. Those issues must be addressed through the appropriate customs or regulatory process.
This guide explains how businesses can manage shipping delays in 2026, which financing products may be relevant, how UK customs and VAT arrangements affect liquidity, and how to calculate the true cost of a delayed shipment.
Can You Get Business Finance While Goods Are Delayed at Customs?
Yes, potentially. Some UK commercial lenders may consider financing requests from businesses experiencing temporary cash-flow shortages caused by delayed imports, shipping disruption or customs clearance problems.
However, approval is not based solely on the value of the goods or the existence of a shipment.
A lender will generally assess the company's financial position, trading history, available cash, existing debt and ability to repay.
It may also examine the shipment itself.
Relevant questions include whether the goods have been paid for, who legally owns them, where they are located, why they are delayed and when they are expected to become available for sale.
For example, an established UK distributor with consistent sales and a delayed shipment of ordinary commercial inventory may have different financing options from a new importer whose goods are being held because they do not meet applicable product requirements.
The British Business Bank's working capital guidance specifically identifies supply-chain disruption and longer lead times as factors that can place pressure on a company's financial position.
The important distinction is whether the business has a temporary funding gap that can realistically be repaid or a more serious problem affecting the commercial value or legal availability of the goods.
What Should You Do First When a Shipment Is Delayed?
Before borrowing, establish the exact reason for the delay.
Not every shipment described as being "stuck at customs" is actually subject to a customs hold.
Goods may be waiting for a carrier release, a missing shipping document, an available delivery appointment or the completion of a declaration.
These problems require different actions.
Step 1: Confirm Where the Goods Are Located
Ask the freight forwarder, carrier or customs agent for the latest verified shipment status.
Establish whether the goods are:
- Still awaiting dispatch from the overseas supplier.
- In transit by sea, road, rail or air.
- At a UK port or airport.
- In temporary storage awaiting customs clearance.
- Under an official customs or other regulatory hold.
- Customs-cleared but awaiting commercial release or transport.
- At an inland warehouse awaiting delivery.
The location matters because it determines which expenses are accumulating and which documents or permissions are required.
For example, a container still at sea is unlikely to be incurring import terminal demurrage in the same way as a container already discharged at a UK port.
Step 2: Identify the Actual Cause
A shipment can be delayed for several reasons.
These include missing import documentation, incorrect commodity codes, unpaid duties, inspections, licensing requirements, carrier release issues, transport disruption and incomplete shipping records.
HMRC's published customs clearance guidance identifies unpaid duty or VAT, missing licences and inspection failures among reasons goods may be held at the border.
Source: GOV.UK — Get Customs Clearance When Importing Goods.
A business should request the specific reason rather than relying on a general statement that customs has delayed the shipment.
Step 3: Obtain a Revised Release and Delivery Estimate
Ask the party handling the shipment what must happen before the goods can move.
Request an estimated timeline for resolving the outstanding issue.
Where possible, obtain written confirmation of the next action, the responsible party and the current status.
However, a shipping estimate is not a guaranteed customs release date.
A lender may be reluctant to rely on a specific repayment event when the cargo remains subject to an unresolved regulatory hold.
Step 4: Identify Charges That Are Increasing
Ask for an itemised breakdown of charges already incurred and those expected if the shipment remains delayed.
These may include demurrage, port storage, detention, inspection costs, customs agent charges and additional transport expenses.
The business should establish which charges are legally or contractually payable and which may be disputed.
Step 5: Calculate the Immediate Cash Requirement
Determine how much money is needed to meet valid charges, preserve business operations and continue paying other essential obligations.
The financing requirement may be substantially lower than the full value of the shipment.
For example, a company with £90,000 of inventory already paid for might need only £15,000 to cover a temporary operating gap and legitimate clearance-related expenses.
Borrowing the entire £90,000 again would not necessarily be appropriate.
Why Shipping and Customs Delays Create Working Capital Problems
International trade often requires companies to spend money well before receiving the corresponding sales revenue.
Delays extend the period during which those funds remain unavailable.
Cash Is Already Committed to the Overseas Supplier
An importer may have paid a deposit or settled the full purchase price before the goods were dispatched.
If the shipment is delayed, the money remains committed to inventory that cannot yet be sold.
The company may still need to purchase other stock and pay ordinary operating expenses.
Customer Revenue Arrives Later
A delay can prevent a distributor from fulfilling an order or a manufacturer from completing a customer contract.
As a result, customer invoicing or collection may also be postponed.
For example, a wholesaler expecting to deliver products on 1 November might be unable to deliver them until 1 December.
If its customer pays 30 days after delivery, the delay can shift the expected cash receipt by another month.
The business therefore experiences both delayed inventory availability and delayed customer collections.
Storage and Carrier Charges Can Accumulate
Goods held at ports or terminals can incur additional charges once the applicable free period expires.
These expenses reduce the profitability of the transaction.
They may also need to be paid before the shipment can be collected, depending on the contractual and commercial arrangements.
Additional Orders May Be Required
Some companies purchase replacement goods to avoid losing important customers.
For example, an electronics distributor might arrange a second shipment from an alternative supplier while its original stock remains delayed.
That decision can protect sales but create additional borrowing requirements.
The company may temporarily have two substantial inventory purchases outstanding.
Existing Loan Repayments Continue
A shipment delay does not ordinarily suspend an importer's existing financing obligations.
Loans, equipment leases, overdrafts and other repayments generally remain due under their respective agreements.
A business should therefore assess the delayed shipment alongside its complete financial position.
Demurrage, Detention and Port Storage: What's the Difference?
Shipping charges are frequently confused, but they can apply to different circumstances.
Understanding which charge is being imposed can help the business calculate the cash required and identify whether an invoice should be challenged.
Demurrage
In container shipping, demurrage commonly refers to charges incurred when a container remains at the terminal beyond the permitted free period.
For example, an importer might be entitled to several days of terminal free time after discharge.
If customs clearance takes longer and the container cannot be collected, demurrage may begin accruing.
However, free-time rules and charge calculations differ between carriers, terminals and contractual arrangements.
Detention
Container detention generally refers to charges for retaining the carrier's container outside the terminal beyond the applicable free-time allowance.
For example, a container may have cleared customs and been collected, but the importer keeps it at its warehouse for too long before returning the empty container.
This may result in detention charges.
Port Storage
Storage charges may relate to the use of space at a terminal, depot or warehouse.
These can be separate from demurrage and detention.
In certain circumstances, several types of charges may apply to the same shipment.
Why the Distinction Matters
A business should ask which party is charging each amount and which contractual terms support it.
A freight forwarder, shipping line and terminal operator may have different responsibilities.
The free period may also start from a specific operational event rather than the date the importer first receives notice that its goods have arrived.
DHL Global Forwarding's demurrage and detention guidance explains these differences and the importance of understanding the contractual free-time period.
A customs delay does not automatically entitle the importer to a waiver of all storage, detention or demurrage charges.
Where the charges appear incorrect, request the applicable tariff, relevant dates and supporting records before accepting them.
Worked Example: Financing a UK Import Shipment Delayed by 20 Days
Consider a hypothetical UK wholesale distributor importing commercial products from an overseas manufacturer.
The business has an established customer base and expects to sell the shipment for £110,000, excluding VAT.
The original plan involves purchasing the goods, transporting them to the UK, clearing customs and delivering them to the customer.
The customer is expected to pay 30 days after delivery.
Step 1: Calculate the Original Shipment Costs
Assume the supplier charges £75,000 for the inventory.
International freight and insurance cost £5,000.
The correctly assessed Customs Duty for the specific shipment is assumed to be £3,200.
Inland transport after customs clearance costs £1,800.
The original landed and delivery cost is therefore:
£75,000 + £5,000 + £3,200 + £1,800 = £85,000.
Original expected expenditure: £85,000.
For simplicity, the example excludes import VAT cash payments on the assumption that the importer qualifies for and correctly uses postponed VAT accounting.
It also excludes general company overheads and any customer VAT collected or accounted for.
The £3,200 duty amount is an assumed valid charge, not an assertion that a particular tariff applies to all goods.
Step 2: Calculate the Original Cash-Flow Timing
Assume the supplier receives £75,000 on day zero.
The £5,000 freight and insurance cost is paid on day five.
The goods are expected to clear customs on day 30.
The company expects to pay the £3,200 duty and £1,800 inland transport cost at that stage.
The goods are delivered to the customer on day 35.
The customer pays £110,000 on day 65.
The company therefore expects to have money tied up for approximately 65 days from the supplier payment until the customer receipt.
Before financing and other overheads, the expected transaction contribution is:
£110,000 − £85,000 = £25,000.
Step 3: Introduce a 20-Day Customs Delay
Now assume the shipment is held for additional documentary checks.
Instead of being released on day 30, it clears customs on day 50.
Customer delivery moves from day 35 to day 55.
Because the customer still pays 30 days after delivery, the expected receipt moves from day 65 to day 85.
The business must therefore wait an additional 20 days to collect the £110,000.
Step 4: Calculate the Additional Delay Charges
Assume the shipment incurs the following additional costs.
Demurrage and storage charges: £2,000.
Additional inspection, documentation and handling expenses: £800.
The total extra cost is:
£2,000 + £800 = £2,800.
These figures are hypothetical. Actual charges depend on the shipment, carrier, terminal, underlying reason for delay and applicable agreements.
The revised transaction cost becomes:
£85,000 + £2,800 = £87,800.
New expected expenditure: £87,800.
Step 5: Calculate the Additional Financing Requirement
Assume the company has £35,000 of uncommitted cash allocated to the shipment, excluding a separate reserve for financing charges and other operating obligations.
Under the original plan, the peak amount to be financed is:
£85,000 − £35,000 = £50,000.
Following the customs delay and additional charges, the comparable requirement becomes:
£87,800 − £35,000 = £52,800.
The delay has therefore increased the transaction's required external funding by £2,800.
However, the amount borrowed must also remain outstanding for longer because the customer receipt has been delayed.
Step 6: Calculate the Original Financing Cost
For illustration, assume the company would have obtained a £50,000 working capital loan under the original delivery plan.
The hypothetical terms are:
- Principal: £50,000.
- Nominal annual interest: 14%.
- Interest calculation: Simple interest, actual/365.
- Loan period: 65 days.
- Arrangement fee: 1.5%, paid separately.
- Principal and interest: Repaid when the customer pays.
- No additional charges.
Assume the entire £50,000 is advanced on day zero and remains outstanding for 65 days.
The interest would be approximately £1,246.58.
The arrangement fee would be £750.
Total financing cost would be approximately:
£1,996.58.
After financing costs, the transaction's expected contribution before other business expenses would be approximately:
£25,000 − £1,996.58 = £23,003.42.
Step 7: Calculate the Financing Cost After the Delay
Now assume the lender provides £52,800 instead of £50,000.
The same hypothetical 14% simple annual interest rate and 1.5% arrangement fee apply.
However, the loan remains outstanding for 85 days rather than 65 days.
The interest would be approximately £1,721.42.
The arrangement fee would be £792.
Total financing cost would be approximately:
£2,513.42.
The transaction's contribution before financing is now:
£110,000 − £87,800 = £22,200.
After the financing costs:
£22,200 − £2,513.42 = £19,686.58.
Step 8: Compare the Financial Impact
Under the original plan, the transaction was expected to produce approximately £23,003 in contribution after the illustrative financing cost.
Following the customs delay, that falls to approximately £19,687.
The 20-day delay reduces the expected contribution by approximately £3,317.
That reduction consists of the additional £2,800 in direct shipment charges and approximately £517 in extra financing costs.
The figures exclude further business overheads, tax, unexpected expenses and any customer disputes.
They also assume the lender approves the larger facility and longer financing period on the same pricing basis.
In reality, an extension might be unavailable or subject to different fees and conditions.
What This Example Demonstrates
Shipping delays affect business cash flow in two ways.
First, they can create additional direct expenses.
Second, they extend the period during which business capital is tied up before customers pay.
A company does not necessarily need to refinance the entire shipment value.
The relevant question is how much additional cash is needed, when it is needed and whether the eventual proceeds can repay the financing.
The best funding plan is based on the actual peak cash shortfall, financing charges and a realistic delayed-delivery scenario—not simply the original supplier invoice.
Business Financing Options During Shipping and Customs Delays UK
Several financing products may be relevant when shipments are delayed.
The correct option depends on whether the goods have arrived, whether they are legally available, what assets the company already owns and how the business expects to repay.
1. Short-Term Working Capital Loans
A short-term working capital loan may help an eligible company cover temporary operating expenses while waiting for delayed goods or customer payments.
Potential uses, where permitted by the lender, can include legitimate freight expenses, stock-related costs, payroll and other operating requirements.
For example, a distributor might seek £25,000 in working capital because a delayed shipment has postponed customer deliveries.
The lender may consider the company's established revenue, profitability, cash reserves and existing borrowing.
However, a short-term loan can create repayment pressure when the shipping delay has no reliable end date.
The borrower should establish whether repayments must begin before the goods are delivered and sold.
2. Revolving Business Lines of Credit
A revolving credit facility may be particularly relevant to importers with repeated purchasing cycles.
The company receives access to an approved limit and can draw funds when needed, subject to the terms.
For example, a business could use the facility to cover temporary freight expenses, repay borrowing when inventory sales are collected and later draw funds for another shipment.
Interest is often charged on utilised balances.
However, arrangement fees, renewal conditions, security requirements and cancellation rights can apply.
A revolving facility can be more flexible than a fully drawn fixed-term loan, but that flexibility depends on the contract.
The borrower should not assume that the lender must automatically increase the limit when a shipment is delayed.
3. Import and Trade Finance
Import finance is designed to support qualifying international purchasing transactions.
Depending on the provider, funding may be available to pay an overseas supplier or manage an agreed trade cycle.
This can be useful when a company needs to purchase inventory before receiving money from its customers.
However, a conventional import finance facility arranged before shipment may have a maturity date tied to the expected transaction.
If goods are delayed, the borrower may need to request an amendment or extension.
The provider may review the new estimated delivery date, shipment status, collateral and other circumstances.
An existing import finance agreement does not necessarily extend automatically because the carrier or customs authority delays the goods.
4. Supplier Credit and Extended Payment Terms
One of the most practical ways to manage a shipping delay may be to renegotiate payment terms with the overseas supplier.
For example, a manufacturer might agree to defer part of the outstanding balance until shipping documents are issued or goods become available.
However, the supplier is not obligated to accept revised terms.
A company should obtain any changes in writing.
Where the supplier is responsible for the delay under the relevant contract, the importer should review whether it has contractual remedies rather than immediately taking on new debt.
The position depends on the supply agreement and relevant delivery terms.
5. Inventory and Stock Finance
Inventory-backed financing may help established businesses holding eligible commercial stock.
However, goods delayed at sea or under customs control are not necessarily eligible for ordinary inventory finance.
A provider may require the goods to be legally owned by the borrower, identifiable, appropriately insured and located in an acceptable warehouse.
A lender may also require evidence of control over the stock or suitable security.
Customs holds, disputed ownership or carrier liens can complicate the assessment.
Goods that are unavailable for sale because of unresolved legal restrictions may present greater risk than stock already held in the business's warehouse.
6. Invoice Finance Against Existing Customer Receivables
A company may have eligible unpaid invoices unrelated to its delayed shipment.
For example, a wholesaler could have £100,000 in outstanding invoices for products already delivered to other customers.
An invoice finance provider may consider advancing funds against qualifying receivables.
That money may then help the company manage permitted operating obligations while the next shipment remains delayed.
However, invoice finance is generally based on eligible existing receivables.
A customer order for goods that have not arrived or been delivered does not automatically qualify as an unpaid invoice that can be financed.
The lender will assess invoice validity, debtor creditworthiness and other conditions.
For more information, see the British Business Bank's guidance on invoice finance.
7. Purchase Order Finance
Certain specialist finance providers may consider funding qualifying supplier costs linked to confirmed commercial customer orders.
For example, a UK distributor might have a signed purchase order from an established business customer and require funds to pay an overseas manufacturer.
However, purchase order finance is not universally available for every type of transaction.
Providers may require evidence of a confirmed customer order, adequate margins, an acceptable supplier and a realistic delivery schedule.
An unresolved customs hold or uncertain delivery date may affect eligibility.
The lender may also need confidence that the customer will accept and pay for the goods once delivered.
8. Asset-Based Lending
Established importers and distributors may have eligible business assets beyond the delayed shipment.
These could include existing inventory, trade receivables, equipment or other acceptable collateral.
A specialist asset-based lender may evaluate those assets as part of a broader secured facility.
This can be relevant where the company has substantial underlying asset value but needs temporary liquidity.
However, security valuations, existing lender charges and repayment affordability remain important.
A business should not assume it can borrow against the full book value of its assets.
9. Customer Deposits and Revised Delivery Terms
If the shipment is intended to fulfil a confirmed customer order, a company may consider discussing a revised deposit or staged payment arrangement.
For example, a commercial customer might be willing to make an additional payment to secure production capacity or reserved inventory.
However, this must be commercially and contractually agreed.
A customer may instead have rights to cancel, seek remedies or refuse further payment because of the delay.
The importer should review the actual contract before making representations about the expected delivery date or requesting additional funds.
10. Revenue-Based Financing
Some retailers and e-commerce businesses may be eligible for commercial funding based on qualifying sales activity.
However, financing linked to daily or weekly sales collections can create additional pressure if delayed inventory reduces revenue.
A company with little stock available for sale may receive less customer income while still facing contractual minimum payment requirements.
A revenue-based funding arrangement should therefore be evaluated against realistic trading activity, not historical sales alone.
Can a Business Borrow Money to Pay Customs Duty and Clearance Charges?
Potentially.
Some working capital lenders may permit funds to be used for legitimate import-related expenses.
However, borrowers should distinguish commercial financing from HMRC's own payment and customs procedures.
The fact that a business has obtained a loan does not automatically mean its goods will be released.
The relevant customs requirements still need to be satisfied.
Duty Deferment Accounts
A duty deferment account allows eligible businesses to postpone payment of certain import charges.
Under HMRC's published rules, qualifying charges declared through the Customs Declaration Service during a calendar month are generally collected on the 16th of the following month or the next working day.
This provides roughly two to six weeks of deferral, depending on the date of declaration.
However, an approved account and sufficient available deferment or guarantee capacity are required.
If the account limit is exceeded or deferment is refused, customs clearance may be delayed.
A duty deferment account is not the same as a working capital loan.
It changes the timing of qualifying customs payments rather than providing unrestricted cash.
Official source: HMRC — How to Use Your Duty Deferment Account.
Postponed VAT Accounting
Eligible UK VAT-registered businesses can use postponed VAT accounting to account for import VAT through their VAT Return rather than paying it upfront at importation.
This can materially reduce the immediate cash requirement associated with certain imports.
However, ordinary input VAT recovery rules continue to apply.
The business must satisfy the applicable conditions and ensure that the correct treatment is selected on the customs declaration.
Where a customs agent submits the declaration on the importer's behalf, the business must provide the required written instructions.
Postponed VAT accounting is not an exemption from import VAT.
Official source: HMRC — Check When You Can Account for Import VAT on Your VAT Return.
Why These Arrangements Matter
An importer facing a £20,000 immediate cash requirement should determine whether that amount includes taxes that can legitimately be postponed or deferred.
If the business qualifies for suitable HMRC arrangements, its commercial borrowing requirement may be lower.
However, customs duty, freight, demurrage and other commercial costs may still require payment.
The business should not rely on a tax treatment until eligibility has been confirmed.
Temporary Storage vs Customs Warehousing: Can They Reduce Cash Pressure?
These customs arrangements are often confused, but they are not identical.
Temporary Storage
HMRC permits goods arriving in the relevant circumstances to be held in approved temporary storage facilities before the full customs declaration or another permitted customs procedure is completed.
Goods can generally remain in temporary storage for up to 90 days, subject to the applicable rules.
Temporary storage can defer the need to complete the full declaration and pay relevant import duties and taxes until the appropriate customs stage.
However, the goods remain under customs control.
The 90-day temporary storage period does not mean the business receives 90 days of free port storage or permission to sell the goods before release.
Commercial storage and handling charges may continue under the applicable agreements.
Official source: HMRC — How to Put Goods Into a Temporary Storage Facility.
Customs Warehousing
Customs warehousing is a separate customs special procedure.
Qualifying goods can be stored in an authorised customs warehouse with relevant duties and import VAT suspended until the goods are released into free circulation or otherwise dealt with under the applicable rules.
A business may use an appropriately authorised public customs warehouse or operate a private facility if it holds the necessary authorisation.
However, customs warehousing requires compliance with the procedure and relevant record-keeping obligations.
Goods cannot simply be moved into any ordinary warehouse and treated as duty-suspended inventory.
Official source: HMRC — How to Use a Customs Warehouse.
Does Customs Warehousing Eliminate the Need for Financing?
No.
The business may still have paid the overseas supplier, freight costs and other expenses.
Warehouse charges may also apply.
Customs warehousing can assist with the timing of certain tax obligations, but it does not necessarily provide cash to cover operating expenses.
The suitability of the procedure should be discussed with an appropriately qualified customs professional.
Why Goods Get Stuck at UK Customs in 2026
Several customs and operational requirements can affect clearance.
Understanding the actual reason for a hold is essential before calculating the financing period.
Incorrect Commodity Codes
Imported goods must be classified using the appropriate commodity code.
The classification helps determine applicable duty rates, restrictions and other requirements.
An incorrect code can create declaration problems or result in incorrect tax calculations.
Businesses can use the official UK Trade Tariff to research relevant commodity classifications and duty measures.
Missing or Incorrect EORI Numbers
Businesses importing into England, Scotland or Wales generally need an EORI number beginning with GB.
Movements involving Northern Ireland may require an XI EORI, depending on the circumstances.
An incorrect or missing EORI can delay customs processing.
Source: GOV.UK — Check Which EORI Number You Need.
Incomplete Customs Declarations
Missing or inconsistent data can prevent a declaration from progressing normally.
Relevant information may include the importer, commodity code, origin, customs value and other required details.
The Customs Declaration Service, or CDS, provides the relevant system for customs declarations.
Missing Import Licences or Certificates
Some products require additional licences, certificates or regulatory approvals.
Requirements can apply to certain food products, plants, chemicals, medical products and other regulated goods.
A business should verify product-specific requirements before shipment.
A commercial loan cannot substitute for legally required authorisation.
Physical or Documentary Inspections
Goods may be selected for physical examination or documentary checks.
The business may be asked to provide additional evidence or clarification.
The duration depends on the issue and the relevant authority.
Safety and Security Declarations
Great Britain requires entry summary safety and security declarations for relevant imports.
Since 31 January 2025, these requirements have also applied to goods imported into Great Britain from the EU, subject to applicable waivers.
The carrier or haulier is generally legally responsible for the relevant declaration, although submission can be delegated.
Importers should establish that the responsible party has completed the required process.
HMRC's guidance was updated in February 2026.
Official source: HMRC — Safety and Security Import Requirements.
Carrier and Commercial Release Issues
A shipment may be customs-cleared but still unavailable because the carrier has not issued the required release or outstanding commercial charges remain unresolved.
This is a different problem from an official HMRC hold.
The importer should identify which party is preventing collection and what conditions must be satisfied.
Who Should You Contact if Goods Are Held at Customs?
The correct contact depends on the reason for the hold.
For routine freight, delivery and carrier-release issues, the freight forwarder, carrier or customs agent may be the appropriate first contact.
Where a customs declaration has been submitted and is awaiting HMRC processing, the National Clearance Hub may be relevant.
HMRC National Clearance Hub
HMRC updated its National Clearance Hub contact guidance in June 2026.
Before contacting the Hub about an import declaration, businesses should check that the normal clearance time has elapsed, the declaration has reached the appropriate accepted status and all required documents have been uploaded.
They should also review messages from HMRC.
The Hub provides assistance concerning live declarations and relevant clearance issues.
Official source: HMRC — National Clearance Hub.
Customs Declaration Service Problems
Where the problem involves CDS technical errors, HMRC provides a separate process for reporting relevant issues.
Importers and their agents should review applicable error codes and published workarounds before submitting a report.
HMRC updated this guidance on 28 September 2026.
Official source: HMRC — Report a Problem Using the Customs Declaration Service.
Why Identifying the Correct Problem Matters
A business may incur unnecessary financing costs by borrowing to pay charges when the underlying issue is actually a correctable documentation error.
The company should work to resolve the shipment problem while evaluating any genuine working capital requirement.
Financing and customs clearance are separate processes that may need to proceed simultaneously.
How Do Lenders Assess Financing for Delayed Shipments?
There is no universal minimum turnover, trading-history requirement or loan size across all UK commercial lenders.
However, financing requests involving delayed imports can require additional information.
The Reason for the Delay
A lender may distinguish between ordinary port congestion and an unresolved legal or regulatory problem.
A shipment held for a routine documentary check may present a different risk from goods that have failed mandatory safety requirements.
Evidence of Ownership
The lender may want to understand which company owns the goods and whether another party has a security interest or contractual right over them.
Supplier payment records, shipping documents and contractual delivery terms may be relevant.
Inventory Saleability
Goods that can be sold to several customers may provide a different risk profile from highly customised products.
If the shipment is delayed until after a seasonal sales period, expected stock value and turnover may decline.
Customer Orders
A confirmed customer order can help demonstrate demand.
However, the lender may examine cancellation rights, delivery deadlines and the buyer's payment obligations.
A purchase order does not automatically guarantee that the customer will pay after a delayed delivery.
Trading History and Profitability
An established importer may demonstrate previous successful shipments and normal collection cycles.
A business with limited operating history may be asked for more extensive forecasts or supporting information.
Existing Debt
Lenders may review current loans, import finance, overdrafts and supplier obligations.
A delayed shipment may already be financed under an existing facility.
Any new lender may need to establish whether the goods or receivables are already subject to security.
Repayment Capacity
The most important issue is whether the business can repay the financing from credible future cash flow.
An importer relying entirely on a shipment with no known release date may face more limited options than a company with diversified sales and sufficient ongoing revenue.
What Documents Are Needed to Apply for Shipping Delay Business Finance?
A lender may request ordinary business financial records together with documentation supporting the shipment and expected repayment source.
Useful information can include:
- UK company registration and ownership details.
- Recent business bank statements and financial accounts.
- Overseas supplier invoices and purchase orders.
- Supplier payment confirmation.
- Commercial invoice and packing list.
- Bill of lading, airway bill or relevant transport records.
- Freight forwarder or customs agent correspondence.
- Customs declaration references and relevant hold notices.
- Current shipment tracking and revised delivery estimates.
- Itemised demurrage, storage, inspection or other charges.
- Customer orders, invoices and expected collection dates.
- Details of available cash, existing debt and the proposed financing amount.
The lender may also request security information, inventory records or additional supporting documents.
The purpose is to establish that the transaction is genuine, the financial requirement is understandable and the proposed borrowing has a credible repayment source.
Do not submit confidential commercial or identity information through an unsecured general enquiry channel.
How to Reduce Financing Costs While a Shipment Is Delayed
Borrowing may be one option, but businesses should also investigate practical ways to reduce the amount of additional debt required.
Request an Itemised Breakdown of Charges
Ask the carrier, terminal or forwarder to explain each charge.
Confirm the start date, applicable free time, rate and contractual basis.
Where a charge appears incorrect, request a review.
A customs hold does not automatically invalidate commercial charges, but discrepancies should be challenged with appropriate evidence.
Ask About Additional Free Time or Waivers
A carrier or terminal may consider a commercial adjustment in particular circumstances.
However, this is discretionary unless the relevant contract or other applicable rule provides an entitlement.
Do not assume an extension will be granted.
Review Supplier Payment Terms
Where a final supplier balance remains unpaid, the business may be able to negotiate a revised payment schedule.
This could reduce the immediate financing requirement.
However, supplier credit may create additional charges or commercial restrictions.
Review Customer Deposits
Where a confirmed customer order exists, a revised deposit arrangement may be worth discussing.
Any payment should reflect the actual contract and commercial circumstances.
A customer is not obligated to fund the supplier's shipping delay.
Check VAT and Duty Arrangements
Eligible postponed VAT accounting or duty deferment may reduce the amount payable immediately.
However, these arrangements do not eliminate underlying legal obligations or commercial shipping expenses.
Consider a Facility With Staged Drawdowns
If the business needs £20,000 immediately but expects to need another £10,000 only after clearance, a suitable drawdown structure could avoid paying interest on unused capital.
However, availability depends on lender terms, and commitment or facility fees may still apply.
Check Whether Insurance Responds
Cargo insurance may cover certain insured loss or damage events.
However, ordinary shipping delay, lost sales and additional demurrage are not automatically covered under every cargo policy.
The insured risks, exclusions, extensions and claim conditions must be reviewed.
Where a claim is possible, the insurer or broker should be notified in accordance with the policy.
Do not assume that an insurance payment will arrive before a loan must be repaid.
Does Shipping Insurance Cover Delays and Lost Sales?
Not necessarily.
Cargo insurance is commonly arranged to protect goods against specified risks during transportation.
The available cover depends on the policy wording.
A delay may cause additional expenses without physical damage to the cargo.
Those expenses may fall outside ordinary cargo coverage unless an appropriate extension or another policy responds.
Likewise, projected lost sales resulting from a late shipment are not automatically recoverable under standard cargo insurance.
The business should distinguish between physical loss or damage, extra expenses and consequential financial losses.
Before relying on insurance as the repayment source for a loan, obtain confirmation of the coverage position and understand the claim process.
A possible insurance claim is not equivalent to cleared cash.
What if Your Shipping Delay Causes You to Miss a Customer Contract?
A delayed shipment can affect more than inventory availability.
The importer may have promised a delivery date to a commercial customer.
If the goods arrive late, the customer may have contractual rights depending on the agreement.
Possible consequences can include delayed acceptance, agreed deductions, cancellation or a commercial dispute.
However, these outcomes are not automatic.
The actual position depends on the contract, cause of delay, relevant notices and applicable law.
Review Delivery and Termination Terms
Establish whether the agreement specifies a fixed delivery deadline and what happens if it is missed.
The supplier should not assume that a shipping disruption automatically excuses non-performance.
Notify Customers Promptly
Where a material delay is expected, communicate accurate information.
Avoid promising a revised delivery date that has not been reasonably verified.
Calculate Potential Financial Exposure
If a customer cancels an order, the importer may be left with inventory that must be sold elsewhere.
The repayment forecast should be updated accordingly.
Do Not Borrow Against Revenue That Is No Longer Credible
A lender may consider confirmed customer orders as evidence of demand.
However, if the buyer has validly cancelled or materially reduced its commitment, the borrower should disclose the change.
The original sales value may no longer provide a realistic repayment source.
Funding Shipping Delays by Industry
Different industries experience different financial effects from delayed shipments.
E-Commerce and Online Retail
Online retailers may prepay overseas manufacturers before seasonal inventory arrives.
A shipment delayed during a peak sales period can reduce the opportunity to sell products at their expected price.
Some established e-commerce businesses may investigate working capital or eligible sales-linked finance.
However, future sales should be forecast conservatively, especially if inventory arrives after the intended selling season.
Wholesale and Distribution
Wholesalers may have large amounts of cash tied up in stock while continuing to fulfil other customer orders.
A revolving credit facility, eligible inventory finance or receivables facility may be relevant.
Customer concentration and actual inventory turnover are important underwriting considerations.
Automotive Parts Importers
Automotive parts distributors may need urgently required components for commercial customers.
Shipping delays can create demand for replacement purchases or alternative suppliers.
A lender may assess the value and resale potential of the delayed parts.
Slow-moving, obsolete or highly specialised components may be less attractive as collateral.
Manufacturing and Engineering Companies
Manufacturers may depend on imported machinery components, electronics or other materials.
A delay can interrupt production and postpone customer invoicing.
Financing may help cover eligible operating expenses, but it cannot guarantee that missing components will arrive.
The company should distinguish a temporary supply disruption from a prolonged inability to complete customer contracts.
Packaging Manufacturers
Packaging companies may import film, resins, inks, paperboard or specialist machinery.
Delayed materials can affect production capacity and delivery schedules.
Working capital needs should be calculated using the actual impact on manufacturing cash flow.
Food and Beverage Importers
Food importers can face additional border and product compliance requirements.
Perishable goods may lose commercial value while delayed.
A lender may therefore consider product shelf life, storage conditions and whether the goods can still be legally sold.
A financing arrangement should not rely on stock values that are no longer realistic.
Construction Materials Distributors
Construction suppliers may import fittings, equipment or specialised building products for confirmed projects.
A delay could affect the contractor's installation timetable and customer payment milestones.
Funding availability depends on the business and the actual contractual exposure.
Furniture and Commercial Interiors Suppliers
Office furniture and interiors companies may import goods for customer installations.
A customs delay can postpone delivery and the final project payment.
A working capital facility may address eligible supplier and operating costs, but the business should consider whether the customer can postpone or cancel the order.
How to Apply for Working Capital During a Shipping Delay
Step 1: Verify the Shipment Status
Confirm the location, reason for delay and responsible party.
Gather documentary evidence.
Step 2: Resolve Any Customs Issues
Work with the customs agent, carrier or relevant authority to address declaration errors, missing documents or other clearance requirements.
Do not assume financing itself will release the goods.
Step 3: Calculate Additional Expenses
Include valid charges for storage, demurrage, inspections, freight and other relevant costs.
Identify which expenses are already paid and which remain outstanding.
Step 4: Update Expected Customer Receipts
Determine when the goods are realistically expected to be available for sale.
Consider customer delivery terms, cancellations and payment periods.
Step 5: Calculate the Peak Cash Requirement
Forecast the company's incoming and outgoing cash over the relevant period.
Identify how much money is needed at the lowest point in the forecast.
Include normal operating obligations and a reasonable allowance for further delays.
Step 6: Review Existing Facilities and Other Options
Before applying for a new loan, establish whether an existing credit line, supplier arrangement or appropriate HMRC payment procedure can address part of the need.
Step 7: Compare Suitable Financing Structures
Evaluate working capital loans, revolving facilities, import finance and other available products based on the actual requirement.
Do not assume that inventory delayed at customs qualifies for conventional stock finance.
Step 8: Compare the Full Cost
Request the amount advanced, fees, interest method, repayment schedule, security requirements and early settlement conditions.
Ask what happens if the shipment is delayed beyond the original financing term.
Step 9: Complete Underwriting
The lender may conduct credit, ownership, financial and transaction checks.
Any approval remains subject to the provider's requirements and final documentation.
Step 10: Monitor the Shipment and Cash Flow
Keep the financing provider informed of material changes where required under the agreement.
Reforecast promptly if delivery dates, customer receipts or expenses change.
Government-Backed Business Finance for Importers UK
Eligible UK businesses may investigate the British Business Bank's Growth Guarantee Scheme.
The scheme is delivered through accredited lenders and supports access to commercial finance for qualifying smaller businesses.
Supported products include term loans, overdrafts, invoice finance, asset finance and asset-based lending.
Under the published operational terms reviewed in October 2026, the scheme generally supports facilities of up to £2 million per business group, subject to applicable exceptions.
The existing operational turnover limit is £45 million.
In July 2026, the government announced plans to increase the turnover eligibility threshold to £54 million and offer greater flexibility for certain longer-term loans.
The British Business Bank has indicated that it is working with accredited lenders to implement these changes.
Applicants should verify which conditions are operational when applying.
The scheme provides a 70% government-backed guarantee to the participating lender.
The borrowing company remains responsible for the full contractual debt.
Government support does not guarantee that a particular importer will qualify.
A business must still demonstrate a viable financing proposition and satisfy the lender's requirements.
Official source: British Business Bank — Growth Guarantee Scheme.
Does UK Export Finance Help Businesses Importing Goods?
UK Export Finance principally supports eligible UK export activity.
A company importing products solely for sale in the domestic market should not assume it qualifies for UKEF-backed export finance.
A business that imports components and then uses them in qualifying exports may have different options.
The relevant programme criteria must be checked.
When Borrowing Through a Customs Delay May Be Unsuitable
A business should be cautious about taking on additional debt when it cannot establish a credible route to recovering the money tied up in its shipment.
For example, financing may be unsuitable where goods have failed mandatory product requirements and cannot legally be released for sale.
The same concern may apply where the customer has cancelled, the inventory has become obsolete or the shipment's expected resale value has fallen sharply.
Repeated borrowing to finance accumulating storage costs can also become dangerous.
A company could end up paying interest on new debt while its underlying goods continue losing value.
Other warning signs include substantial existing financial commitments, unresolved supplier disputes and no reliable estimate of future cash receipts.
A working capital loan can address a temporary financial gap. It cannot make unusable inventory saleable or guarantee the release of goods held for legal reasons.
Where the business is unable to meet liabilities as they fall due, professional restructuring or insolvency advice may be more appropriate than automatically seeking additional credit.
How to Reduce the Risk of Shipping and Customs Delays
Businesses importing regularly can take practical steps to reduce future disruption.
Prepare Import Documentation Before Shipment
Check supplier invoices, product descriptions, commodity codes, customs values and required licences.
Correcting avoidable documentation problems before goods arrive can reduce the risk of delays.
Confirm the Right EORI and Customs Arrangements
Establish that the importer has the necessary registrations and has instructed its customs representative appropriately.
Understand Delivery Terms
Review the applicable Incoterm and supply contract.
Establish which party arranges freight, insurance, customs formalities and the relevant payments.
Incoterms do not by themselves resolve every question about legal ownership, VAT recovery or contract remedies.
Track Free-Time Deadlines
Monitor the carrier's and terminal's applicable free periods.
Know when demurrage, detention and storage charges may begin.
Maintain Contingency Cash
A business importing significant inventory should consider the effect of longer shipping times and unexpected charges.
The required reserve depends on the business's financial circumstances and transaction risks.
Forecast Customer Payment Delays
A shipment delayed by two weeks may cause customer cash receipts to be delayed by a similar period or longer.
Update forecasts using actual delivery and payment terms.
Avoid Excessive Supplier Concentration
A company dependent on one overseas manufacturer may face greater disruption if that supplier cannot deliver.
Diversification may reduce exposure, although alternative suppliers can involve higher costs and different product requirements.
Review Inventory Ordering Practices
Ordering large quantities can reduce unit costs but increase the cash tied up in goods.
Businesses should balance purchasing economics against shipping time, demand and working capital requirements.
Frequently Asked Questions About Funding Shipping and Customs Delays UK
Can I get a business loan if my goods are stuck at UK customs?
Potentially.
Some commercial lenders may consider funding based on the business's financial position and repayment capacity.
However, goods held for unresolved legal or compliance reasons may create additional underwriting risks.
Can I borrow money to pay demurrage charges?
Some working capital lenders may consider legitimate business operating expenses, including eligible shipping-related charges.
However, financing availability depends on the lender's permitted uses and underwriting.
Businesses should first verify that the charges are correctly calculated.
Can a business loan pay customs clearance fees?
Potentially.
Certain commercial funding arrangements may permit legitimate customs and import expenses.
However, payment alone does not guarantee customs release.
The importer must satisfy the relevant declaration, licensing and compliance requirements.
Can I get an emergency business loan for delayed inventory?
Some lenders consider urgent working capital requirements.
However, an urgent request does not guarantee approval or funding before a shipping deadline.
The business must demonstrate affordability and provide the required information.
Can I finance goods that are still at sea?
Some import or trade finance providers may consider eligible goods in transit.
However, availability depends on ownership, shipment documentation, collateral, insurance and other conditions.
Ordinary inventory lenders may have different requirements.
Can I use inventory held at customs as collateral?
Potentially, but it can be difficult.
Lenders may require legally enforceable security, proof of ownership and acceptable control over the goods.
An unresolved customs hold can affect whether the inventory is eligible.
Can I finance a shipment without a confirmed customer order?
Certain established businesses may qualify for general working capital or inventory finance based on historical operations.
However, specialist purchase order finance commonly requires an eligible customer order.
What is the difference between demurrage and detention?
Demurrage commonly concerns a container remaining at the terminal beyond agreed free time.
Detention commonly concerns a container being retained outside the terminal beyond the permitted period.
Actual contractual definitions and charging arrangements should be verified.
Does HMRC charge demurrage?
Demurrage is generally a commercial shipping or container-related charge rather than a standard HMRC customs duty.
HMRC may have separate tax, customs or compliance requirements.
Businesses should identify which organisation issued each invoice.
Does a customs inspection automatically qualify me for a refund of demurrage?
No.
A customs inspection does not automatically cancel carrier or terminal charges.
The importer may be able to request a commercial waiver or dispute an incorrect invoice, but entitlement depends on the applicable contract and circumstances.
How long can goods remain in temporary storage?
Under the relevant HMRC rules, goods may generally remain in approved temporary storage for up to 90 days before they must be assigned to an appropriate customs procedure or otherwise dealt with lawfully.
This does not mean 90 days of free storage.
Can I delay paying Customs Duty?
Eligible businesses may use an authorised duty deferment account or other applicable customs arrangements.
The amount and timing of deferral depend on the rules, account limits and compliance requirements.
Can postponed VAT accounting reduce my funding needs?
Yes, potentially.
Eligible UK VAT-registered businesses may account for import VAT on their VAT Return rather than paying it upfront at importation.
Ordinary VAT recovery rules and declaration requirements still apply.
Does a customs warehouse provide a business loan?
No.
A customs warehouse is a customs procedure that may suspend applicable duty and import VAT while qualifying goods remain under the procedure.
It does not provide unrestricted cash to the importer.
Can my business get funding if a shipment is delayed by 30 days?
Potentially.
The lender will assess the borrower, reason for delay, amount required and credible repayment source.
The length of the delay alone does not determine eligibility.
Will lenders accept a freight forwarder's delivery estimate?
A delivery estimate can provide useful supporting information.
However, it is not a guarantee that customs release or customer payment will occur on the expected date.
Lenders may require additional evidence or apply conservative assumptions.
Can invoice finance help while imported goods are delayed?
Potentially, where the company has other eligible outstanding invoices.
However, goods that have not been delivered or invoiced do not automatically create receivables eligible for ordinary invoice finance.
Can an importer with bad credit obtain working capital?
Some commercial lenders may consider applicants with adverse credit.
However, credit problems can restrict options or increase costs.
Approval depends on the company's wider financial position and lender requirements.
Can e-commerce businesses obtain funding for delayed shipments?
Potentially.
Eligible e-commerce businesses may investigate working capital loans, revolving credit and certain revenue-based products.
However, weak sales caused by unavailable stock can affect affordability and programme eligibility.
Can customs delays affect an existing import finance loan?
Yes.
A delay can extend the period before customer receipts become available.
However, the original loan maturity and repayment obligations generally remain governed by the financing agreement.
The borrower should discuss any required amendment with the lender.
Do the same customs rules apply in Northern Ireland?
Not always.
Northern Ireland operates under specific customs arrangements, including provisions connected to the Windsor Framework.
Requirements can differ according to the movement of goods and their origin or destination.
Businesses should verify the applicable rules before shipping or requesting financing.
Can government-backed loans support delayed shipment working capital?
Some eligible UK businesses may qualify for finance through participating lenders under schemes such as the Growth Guarantee Scheme.
However, a customs delay does not automatically create eligibility.
The business must meet the relevant programme and lender requirements.
Is import finance better than a normal business loan?
Neither is universally preferable.
Import finance may be appropriate for a defined international trade transaction.
A conventional business loan may suit an established company with general working capital requirements.
The financing structure should match the cash-flow requirement and repayment capacity.
How much should I borrow during a shipping delay?
Calculate the maximum expected cash shortfall, including valid additional charges and essential operating obligations.
Then consider available cash reserves, existing facilities and an allowance for realistic contingencies.
Borrowing the entire shipment value may not be necessary.
Can insurance pay for a customs delay?
Not automatically.
Cargo insurance commonly covers specified loss or damage risks rather than all shipping delays or lost profits.
The actual policy wording determines whether any particular delay-related expense is covered.
Will a lender require a personal guarantee?
Some commercial lenders request personal guarantees.
Others may rely on different security arrangements.
The requirements depend on the borrower, financing product and underwriting assessment.
Are shipping delay business loans regulated by the FCA?
Not every UK commercial lending arrangement falls within the Financial Conduct Authority's consumer credit regulatory perimeter.
Certain smaller business credit agreements involving sole traders or qualifying partnerships may be regulated, while much limited-company borrowing falls outside it.
The position depends on the legal borrower and agreement.
Businesses should verify the status of the financing provider and applicable protections.
Final Verdict: How Should UK Businesses Fund Shipping and Customs Delays?
Shipping and customs delays can create substantial financial pressure even where the underlying inventory purchase is commercially profitable.
A company may have paid its overseas supplier, incurred transport costs and committed funds to inventory that remains unavailable for sale.
The delay can also create additional port charges and postpone customer payments.
However, not every situation requires the same financing solution.
For an established importer facing a temporary cash-flow gap, a suitable working capital loan or revolving credit facility may be worth investigating.
For businesses funding repeated international purchases, appropriate import finance or revolving trade facilities may better match their operating cycle.
For companies with eligible outstanding B2B invoices, receivables finance may provide an alternative source of liquidity.
For businesses with eligible inventory or other assets, specialist stock finance or asset-based lending may be relevant.
For importers facing duty and import VAT cash-flow requirements, applicable HMRC deferment or postponed VAT accounting arrangements may reduce the amount of immediate funding needed.
The worked example demonstrates that a 20-day customs delay can reduce a transaction's expected contribution by more than £3,300 through additional direct charges and financing expenses, even when the final customer selling price is unchanged.
It also illustrates why the amount borrowed should be based on the genuine cash requirement rather than the total value of the goods.
Before applying, the business should verify the reason for the delay, establish a realistic release and collection timeline, review existing payment arrangements and calculate the effect on its wider operating cash flow.
The most suitable financing arrangement is one that preserves essential working capital, covers legitimate temporary expenses and can be repaid from credible cash receipts without creating an unsustainable debt burden.
Explore Business Finance for Delayed Shipments and Customs Costs
If your UK business has money tied up in overseas inventory, is experiencing shipping delays or needs working capital while awaiting customs clearance, understanding the available financing options is an important first step.
Mehmi Financial Group is an independent commercial financing brokerage operated by Mehmi Group Corp.
Eligible UK businesses can contact Mehmi Financial Group to describe a commercial financing requirement and determine whether an appropriate third-party financing or referral pathway may be available, subject to local requirements and provider arrangements.
For an initial enquiry, explain the company's UK location, industry, approximate turnover, amount of financing required and intended use of funds.
If the request concerns a delayed shipment, it may also be useful to provide a general description of the goods, their approximate value, supplier country, reason for delay and expected customer payment timing.
Discuss Your Shipping and Import Working Capital Requirements
A financing enquiry does not constitute a customs clearance service, legal advice, loan approval or commitment.
Independent financing providers determine product availability, eligibility, borrowing amounts, security requirements and contractual terms.
Do not send confidential shipping documents, bank statements or identity records through an unsecured general enquiry form. Request the appropriate secure submission process if detailed documentation is needed.
About the Author
Jodhbir Mehmi
Commercial Finance Specialist | Mehmi Financial Group
Jodhbir Mehmi works with business owners on commercial financing requirements, including business loans, working capital, equipment finance and commercial funding structures.
His work focuses on understanding cash-flow requirements, preparing financing transactions and evaluating potential funding arrangements for business operations and investment.
Last reviewed: 25 October 2026.
Financial Disclosure
This article provides general educational information and does not constitute personalised financial, legal, customs, insurance or tax advice.
All company examples, loan rates, financing costs, cash-flow calculations and shipment assumptions are hypothetical. They are not actual client case studies, lender quotations or guarantees of approval.
UK customs procedures, duty arrangements, VAT treatment and import requirements can vary according to the goods, country of origin, importer, location and applicable customs procedure.
Businesses should verify current requirements with HMRC, relevant customs authorities and qualified advisers where appropriate.
Mehmi Group Corp., doing business as Mehmi Financial Group, is a Canada-based commercial financing brokerage, not a bank or direct lender.
UK financing and referral services are subject to applicable local requirements and independent provider availability.
References to commercial lenders, customs authorities, government programmes and finance products are informational and do not imply formal financing relationships.
Brokerage commissions or fees may apply where relevant and should be disclosed.
No particular financing approval, borrowing amount, interest rate or funding date is guaranteed.