SECURE FUNDING ON FUTURE SALES LEDGER

The need for trade finance may be down to the sheer size of an order, or due to underlying cash flow issues. Many of our clients are able to identify good opportunities for growth, but simply cannot afford the upfront costs associated with the deal. Tailored to suit businesses who have confirmed purchase orders from reliable sources, it allows you to secure the stock needed for the order.

How trade finance works

• Advances up to 100% of your confirmed purchase orders
• Worldwide funding
• No upper limit
• Trade Finance will pay your supplier or open a letter of credit on your behalf
• Standalone funding available which is repaid by your customer on delivery of the goods
• Trade Finance can also dovetail with either a Selective Invoice Finance facility or can work with a full invoice finance facility of your choice to provide additional funding and free up the trade finance facility for further deals
• Facilities are always priced on their own merits based on the details of the deal

Advantages

• You do not have to find the cash to pay your supplier, and do not have to wait for potentially prohibitively long periods to be paid by your customer. By doing this, you iron out the cash flow gaps at both ends of the transaction
• Allow the growth of an SME – More working capital and better cash flow management allows business owners to keep in control of the day-to-day running costs of the business whilst growing and fulfilling larger orders that ordinarily wouldn’t be possible.
• Higher profit margins – A finance facility can allow an SME to buy in bulk or volume, up front (at reduced costs) and strengthens the relationship between buyers and sellers.
• Greater efficiency and productivity – Working with other international players allows business owners to diversify their supplier network which increases competition and drives efficiency in markets and supply chains.
• Reduces bankruptcy risks – Late payments from debtors, bad debts, excess stock and demanding creditors can quickly cause problems.

For help and guidance on all aspects of this type of funding talk to our experts. Contact us today for a no obligation consultation.