Flexible Trade Finance
Finance the import and export of key business purchases with our Trade Finance Solutions. Fund up to 90% of the value of your purchases for up to 180 days.
We have formed relationships with lenders who provide solutions designed to help raise finance against the most significant assets, such as the debtor book, inventory, plant and machinery, and freehold property. They are able to be utilized for domestic and international confirmed orders and can be combined with Invoice Finance to provide further funds for sale.
Our trade finance solutions can be used to facilitate a wide range of international trade: Normal facilities are available for the following:
Import of physical stock and equipment
Domestic supplier purchases
Seasonal cash requirements
Turnaround and Restructuring scenarios
Interim Bridging requirements
The Following Topics Are Covered
What Is Trade Finance?
Trade finance can be a viable option for businesses that want to grow and fulfill orders that are currently beyond their reach due to cashflow restrictions.
This type of finance provides businesses with the facility to purchase and deliver orders to their customers. Trade finance can cover both domestic and international purchases. This type of business financing requires a seller and buyer and can involve goods or services.
How Does Trade Finance Work?
When you think about trade, you have to think about how goods and money will change hands. This can get complicated, especially when the parties involved have never worked together before. Let's say, for example, that an importer pays an exporter but the exporter never sends the goods. Or what if the exporter sends goods to an importer in good faith but the importer never pays?
Protection is key in any trading deal in instances where there is one party who does not honor their commitment to either party not fully committing to the trade deal. There are scenarios where a particular crate could be damaged, of poor quality, or even subject to theft. To break this barrier, lenders can offer trade finance as an option with two key examples below:
1. Letters of Credit:
Banks can offer letters of credit as a form of guarantee. In instances such as this, the importer's bank will usually guarantee payment once a bill of lading is issued. A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment. A letter of credit is usually issued directly to the exporter's bank.
Once there is confirmation of goods and the quality inspection is sufficient according to the initial agreement, funds will be released by the importers' bank. In return, the exporter's bank will allow the goods to be released for the transaction to be complete.
2. Documentary Credit (Bill of Exchange)
Documentary credit is an option for releasing payment that is similar to a credit letter. In this case, a lender will release payment when specific documents are submitted.
Assurance is needed to unlock capital and documents frequently required are shipping, purchase orders (POs), or insurance policies. There are often rigorous rules and regulations around documentation to make sure both parties are protected.
What Are The Benefits Of Trade Finance
If you need funding to complete an order, trade finance may be a good option for your business. It can offer financial security to both the seller and the buyer. Below are some of the main benefits of trade finance.
Payment risk reduced
Protects both the buyer and seller
Various products and services available
Business growth due to taking on previously unattainable order
Can help to improve the efficiency of the business operations
Increase in revenue and earnings
What Is The Eligibility Criteria For Trade Finance
Trade finance is designed for businesses who are involved in the distribution trade. Terms are offered on a bespoke basis.
The general criteria for most applications are:
Limited company, registered, based, and trading within the UK, and pays
corporation tax in UK
Minimum of 3 years of trading history.
Credit worthy customers
Cashflow is positive, able to service the facility
How Does The Application Process Work For Trade Finance?
1. Fill out the request a callback form, with some basic information about your business and how much you are looking to borrow.
2. You will receive an email where you can choose a suitable time to schedule an introductory call. We work between Monday to Friday between 9 am to 5 pm.
3. We will work with you to find a suitable loan size and then provide funding if approved.
Why Accelerated Finance For Trade Finance?
Trade Finance can be complex to structure and negotiate. Any delay in a business's supply chain can have major financial repercussions so it's generally time which is the main factor if you want to alleviate any risk.
Accelerated Finance has significant experience in arranging trade finance where mainstream lenders can't or won't lend, if speed is of the essence or if the value of finance is considerable.