Trade finance or transactional finance provides you with funding to pay suppliers for the purchase of finished goods. Normally this is against an order from your customer or some other proven demand for the products you are buying.
Trade finance usually runs alongside the traditional forms of funding like overdrafts, invoice discounting and factoring and will take the form of purchase finance, letters of credit or VAT export funding schemes.
- Import Finance allowing you to pay for goods abroad prior to shipping
- Export Finance covering the cost of shipping and VAT
- Purchase Finance to help with seasonal trends and bulk orders
Funding can be a huge barrier to trading abroad, usually because of the timing of the funds that pay for the goods. In an ideal world your trading partner would help but that’s not always possible and you find you have to pay for goods in advance, or bear the shipping and VAT costs early in the process. We can help with both of these scenarios with a range of schemes that are designed to solve these problems without affecting your existing credit lines.
Trading at home
Whilst winning a large order is good news, it often comes with its own set of headaches especially for newly established businesses who may not have the trading record or cash assets to pay for manufacturing or materials. In these situations we can arrange for finance to allow you to purchase goods and raw materials, and bear much of the manufacturing cost providing you have a firm order for your finished goods from a creditworthy customer.