Trade Finance

Trade finance means financing trade transactions, it covers domestic as well as international trade. This form of transaction involves a seller of goods and services as well as a buyer, It’s often difficult to obtain credit from your suppliers, especially when importing from overseas, this can become a constraint on your cash flow.

For buying goods or services you need to pay upfront to the suppliers and receive payment from your customers later, generally on 30 to 90 days credit term. Trade financing is a tool to bridge gap between paying your suppliers and receiving payment from your customer.

To facilitate your trade business, lenders offer different ways of funding, they make payment directly to your UK or overseas suppliers on your behalf, by way of opening of letter of credit in favour of suppliers or on receipt of shipping documents. Trade financing assists you to effectively manage your cash flow and focus on growing your business. To assist your trade business, we can arrange a structured trade finance facility or it can be taken in conjunction with an invoice finance facility, which will enable you to pay suppliers upfront and also helps you to raise funds from unpaid customer invoices.

For further information, please contact us.

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