Asset finance leasing - XL Business finance
  XL Business Finance Blog » trade finance

Posts Tagged ‘trade finance’

Supply Chain Finance

Tuesday, May 28th, 2013

If you have confirmed purchase orders it may be possible to obtain finance via supply chain finance as was the case for a dried fruit exporter.  XL Business Finance was recently introduced to a business via its bank that had won a substantial contract with a US business supplying dried apple snacks. The requirement for 100% cash covered letters of credit was unworkable and impossible for the client to finance. XL Business Finance  was able to arrange e a $2m solution to procure apples and pay the factory. The deal was secured on credit insured payments from the US buyer. Supply chain finance can either work on a stand alone basis or in conjunction with your existing bank facilities.

Revolving Trade Finance

Friday, April 26th, 2013

A £1.25 m revolving trade finance facility was recently organised for a UK company enabling it to grow it business supplying high quality gas fires to major retail outlets. When the facility was first negotiated the business was experiencing cash flow difficulties and was unable to provide secured payment to its Chinese supplier. The solution was to provide a letter of credit and import loan secured against confirmed orders enabling the business to purchase the necessary products. The end  customers included blue chip high street retailers. The trade and import facility was instrumental in allowing the business trade through a difficult economical environment at a time when no support was available from its bank.

 

Do you need trade finance?

Tuesday, October 18th, 2011

Your goods are pre sold but you don’t have the working capital to purchase your goods in advance. XL Business Finance has over 10 years experience helping businesses with trade finance facilities and has a number of alternative solutions.

For one reason and another many businesses are struggling to obtain financial support from existing high street banks. This is never more true for businesses looking to import goods and products from abroad. The problem is that you have an order in the UK,  your goods have been pre sold, however you don’t have the working capital to purchase the goods in advance. Whilst banks do a certain amount of trade finance it is usually for existing and well established customers with very strong and profitable balance sheets. Banks generally will not support businesses trading for less than 3 years and very rarely will help businesses with marginal credit.

The good news is that there are a number of independent trade finance companies that may be able to assist. It will certainly be easier if your goods have been pre sold as not only will the stand alone trade  finance companies potentially help but also there are a number of factoring companies that also offer trade finance solutions. This is the preferred option for many businesses as a complete financial solution is provided form start to finish. A trade facility is provided for the business to import the goods and once an invoice has been raised in the UK upon delivery the trade finance facility is repaid via a factoring or invoice discounting facility. This factoring facility is repaid when the customer pays the invoice at a agreed future date, ie 30,60 or 90 days hence.

Trade Finance explanied

Thursday, April 28th, 2011

Trade finance provides the ability for business to purchase goods and stock  from within or ouside the UK. The goods can either be pre sold or unsold. Funding is available for just about any scenario however it does depend on a businesses actual circumstances. Just because a business has been declined by a high street bank it doesnt mean funding wont be available from an independent or specialist trade finance company.

For obvious reasons it is far easier to obtain funding for goods that have been pre sold and in certain circumstances 100% funding can be arranged.  XL Business finance can help you obtain the appropriate funding.

International Trade Finance Explained

Saturday, April 9th, 2011

Trade finance can cover business exporting goods  and services ( export finance) or it can cover business importing goods and services ( import finance). Whilst certain high street banks can be very good at providing import and export facilities there are alternatives that can help businesses that are not eligible for bank funding for whatever reason. Again with any type of funding it is possible to obtain alternative views from specialist and independent trade finance company that can provide viable, flexible and competitive alternative to the banks. It is quite often possible to obtain a higher level of funding due to their expertise in particular market.

Can I get Trade Finance ?

Friday, November 5th, 2010

It is now possible to obtain trade finance on a stand alone basis subject to the type of goods you are buying and selling. Traditionally cash for trade finance deals have only been available from the banks via an overdraft facility or a specialist but onerous division of the bank.

International and domestic tade finance is available from most factoring and invoice discounting companies however the god news is that there one or two funders coming into the market that can provide funding on a standalone basis.

Imagine the scenario. You have either pre sold goods with little trading history or you have an exceptional track record of selling goods but you don’t have the cash to purchase your goods. You go to your bank and they dont want to help because you haven’t been trading long enough or you have had a poor trading history ( from the view point of a bank)

A specialist trade finance company has the ability to provide you with your much required working capital. Depending on the stock you are buying, the margin in the deal, who the end customer is and the length of time it takes to sell the goods, funding may be available on a stand alone basis.

Trade finance can also be used in conjunction with a factoring or invoice discounting facility to provide a complete funding solution.

 Unlike the banks that promise the earth and take an age to say no we will be able to provide you very quickly as to wheteher funding may be possible. Give us a call today to find out on 0161 980 0577 or 020 3301 4540

Trade Finance

Monday, September 28th, 2009

Trade Finance provides customers the ability to import goods either from the UK or domestically. If the facility is provided in conjunction with an invoice discounting facility a complete funding solution is provided from start to finish.

For example if a business is importing television sets from China a trade facility would provide a facility to import the goods. Providing the televisions had been pre sold it is possible to get 100% funding.  The trade facility would be repaid when the goods are imported and sold in the UK and an invoice is raised to the UK purchaser. When the invoice is raised to the UK buyer  either an invoice discounting or factoring facility  will repay the trade facility. It can be seen the trade facility and the invoice discounting facility dove tail nicely together to provide a total funding solution.

This type of trade facility is more likely to be provided by an independent invoice discounting company that will take a more flexible and commercial view. Therefore as long as the end purchaser in the UK is verified an reliable the funders know there exit route and as such will be more likely to fund new start businesses, poorly trading businesses and businesses unable to raise finance by their own banks.

Cash Flow Finance

Tuesday, September 22nd, 2009

Cash Flow Finance covers so many financial products and provides the ability for the business to raise additional working capital. Factoring and invoice discounting are the two obvious and well known products however stocking finance, trade finance, payroll finance and even refinancing existing eequipment can provide much needed working capital.

Stocking finance is usually bolted into the back of an invoice discounting facility and can provide much needed additional cash. Trade finance is offered by most high street banks however some of the larger independents are pretty good at this facility. Trade finance provides a customer with working capital against pre ordered goods enabling them to purchase stock from their supplier. Trade finance can either be UK based or if a customer is importing goods then we are looking at International Trade Finance. Simple!

Currently no one is offering payroll finance however it is rumoured that a new funder will soon be entering the market so watch this space.

Refinancing existing eeequipment is increasing becoming more difficult  as residuals values of equipment take a pounding in the current recession. However if there is equity in the equipment or machinery this can be released to provide much needed working capital. The equipment or machinery that is to be refinanced need not be free of finance as it may be possible to repay the existing funder, reduce the monthly payment and also release some cash back into the business. Happy days!

 
 
 

XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

Manchester, Liverpool, Leeds, Preston, Sheffield, Stoke, Merseyside, Lancashire, Cheshire, Staffordshire