What is Trade Finance?
Trade Finance will help you purchase goods from overseas suppliers in order for you to then fulfil your customers purchase order it has placed with your company.
This type of facility is often linked to an invoice finance agreement so that there is a seamless transfer of title from purchase of goods to the creation of a debt (invoice) once goods are delivered. The ‘cost of sale’ funded through Trade Finance is repaid via the Invoice Finance agreement.
There are of course many variations to the example given above and the type of trade finance will vary from transaction to transaction.
How does it work?
Whether you are an established international business or taking your first steps abroad, Trade Finance could be for you. Depending on whether you trade only in the UK, within the European Union or internationally, you will work with and be supported by a lender with trade specialist in your area of business, one that is able to react quickly and at short notice to help you make the most of any opportunity,and who will help you navigate different languages and customs.
What are the benefits?
- More buying power - Negotiate lower prices and receive payment of up to 100% of the purchase price. Buy, receive and sell goods before having to pay for them
- Access expertise – Lenders have the ability to work with suppliers wherever they are in the world, whatever currency they need allowing you to confidently source the most unique, high quality or cost effective products.
- Save time – Lenders pay suppliers directly and in their currency, reducing the burden of admin on your operation
How can we help you?
The Finance Exchange is an industry leading ABL advisory business, where our expertise is purely focused on aligning your specific business and finance requirements with the right lenders and then helping you to achieve the right terms and facility structures for your business. Given our ‘analytical’ and ‘attention to detail’ approach, we are used to working with management teams and ‘taking the strain.’ with prospective lenders, whilst allowing you to focus on your business.
If you would like our support or have any questions, why not contact us? We are here to help!