Trade Finance
A form of finance perfect for businesses that engage in international or domestic trade.
The lender will pay your supplier upfront for the goods you are purchasing.
Your cash flow will improve, as we will negotiate better deals with your suppliers and work with your FX broker to secure the best conversion rates.
Key Facts
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Suppliers can be UK-based or worldwide (with a few exceptions).
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Using a trade finance provider will free up your cash flow, as they will not need to pay for the goods themselves.
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You simply repay the lender once you have sold the goods; most lenders allow up to 180 days to do this, and it can be longer by prior agreement.
How It Works
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The lender provides a 'cash pot' based on the businesses requirements, financial position and trading history.
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Upon your request, the lender pays your supplier on Day 1.
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When you sell the goods, you repay the lender, replenishing the cash in the 'pot'.
Key Eligibility Criteria
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Minimum £200k turnover
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Confirmed purchase orders
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Homeowner/ PG preferred
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Limited Company
Why May You Need It?
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Your business engages in international or domestic trade.
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You find your accounts showing high trade debtors to cash at bank ratio (low cash balance, high trade debtors).
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Cash flow difficulties potentially arising from an order influx preceding trade shows or new trade agreements.
Popular Industries
Wholesalers
As a wholesaler, we overcame persistent financial hurdles using Trade Finance. By securing letters of credit, we streamlined our Far East supply line, expanded my inventory, and secured our liquidity levels, allowing us to take advantage of the vacated market space.