Trade finance is a funding solution for businesses buying goods for resale from UK or overseas suppliers. Often businesses don’t have sufficient working capital or supplier credit terms so trade finance allows businesses to buy, receive and sell goods before payment is made.
It helps by guaranteeing payment to suppliers before goods are in transit and making payment to suppliers when items are despatched. This enables businesses to develop good working relationships due to payment guarantees and helps them negotiate early payment discounts with suppliers.
Trade finance can also provide ongoing funding until end-customer payment is received, supporting the end-to-end transaction process.
- Letters of Credit provided within 24 hours to supplier banks, enabling quick transactions;
- Suppliers are paid on the same day that goods are shipped and funding is available until end-customer payment is received.
- Purchased goods are kept moving with supplier payments guaranteed;
- Working capital is available to support the entire trade cycle from initial order to customer payment, enabling businesses to fulfil existing orders and accept new ones;
- Suppliers can be paid quickly in the currency of their choice, making it easier for them to accept orders and enabling early payment discounts to be negotiated.
Want to find out more? Please get in touch to discuss your particular needs.