lnternational Trade Finance
Most businesses will go to their banks to organise international trade finance facilities which is great if you are a profitable business, have a very strong balance sheet and also have plenty of security to offer. One high street bank is very strong at international trade finance. No prises for guessing but feel free to give us a call if you are stuck. So what happens if you are not strong enough to organise funding via the high street to help you purchase of buy imported goods. Thankfully there are one or two options available to help the less profitable and established businesses.
Firstly there a one or two specialist factoring and invoice discounting companies that provided you have a buyer for your imported goods will provide a trade facility for you to import. They lend you the cash against the goods and as soon as they hit the UK and are delivered to your end user either the customer pays for the cash immediately or the trade facility is repaid from a factoring or invoice discounting facility that will repay the trade facility. Simple provided the margin is good and the goods are non perishable this kind of trade finance shouldn’t be an issue
Secondly there are one or two independent financiers that under the right circumstances will provide letters of credit without the onerous security that the banks require. The facility works in exactly the same way as above that the trade facility of letter of credit is repaid from the sale of the goods to your end user or customer. Again this can be by cash on delivery or provision of factoring or invoice discounting facility on the raising of the invoice.
XL Business finance has over 10 years experience in helping business with innovative finance solutions which might not necessarily be available fro the high street banks and finance companies.