What is Trade Finance?
Trade Finance is often seen as a complicated finance product but it really isn’t! Basically, Trade Finance gives you the funds to pay your supplier and bridge the gap before you’ve received funds from their sale etc typically a period such as 120 days. The finance company pays your supplier and you pay the finance company back on sale of products or as agreed.
Can Trade Finance be used for foreign transactions?
Yes, subject to normal acceptance, Trade finance can be used for domestic and international trade.
Benefits of Trade Finance
One of the main benefits is that by paying the supplier upfront, it may be possible to negotiate significant payment discounts from the supplier – we have seen examples where the costs of the facility are less than the discount the customer negotiated meaning they saved money using the product!!
Speed of decision
Subject to receiving all information requested promptly, the funders often can make a decision within 48 hours however due to the paperwork needed for the transaction it is wise to allow approx 2 weeks for funding.
If Trade Finance is likely to be of interest to you, please get in touch.