Trade Finance for UK Businesses
Trading overseas offers big growth opportunities – but delays and upfront costs can hold you back.
Funding Guru’s Trade Finance gives you fast access to capital to pay suppliers promptly and keep your global supply chain moving.
- Loan from £25k to £5 million +
- Trusted by 500+ UK business owners
- Same day decisions
- Bad credit accepted
- Flexible repayment terms
How Our Trade Finance Can Help Your Business
Over 80% of global trade deals lean on trade finance to smooth out the financing gaps that can occur when goods are delayed. These are just some of the reasons why trade finance is a core element of international trade:
Improved Cash Flow = Improved Manoeuvrability
Don’t let your business get caught short when transportation delays add strain on your finances.
Access Capital When You Need It
Improve your options by having capital ready-to-go for when opportunity calls.
Broaden Your Horizons by Expanding into New Markets
Want to take your business to a new region but don’t have the cash upfront? Trade finance could help.
Enhanced Supply Chain Efficiency
Pay your suppliers quickly with a trade loan to keep your deal moving.
Gain a Competitive Advantage
Improve your buying power by using trade finance to order in bulk.
Reduce Risk in Cross-Border Transactions
Trade finance adds security against payment delays, currency shifts, and supplier issues - making cross-border trade more reliable.
What Is Trade Finance?
Trade finance is an umbrella term used to describe a range of financing options that help to alleviate the trade cycle funding gap – essentially that gap where you’ve paid out but you’re waiting on various things so you can make your money back – making trading goods internationally less risky and more seamless for buyers and sellers.
Trade finance can include the below:
- Lending: A short-term cash loan so you can buy stock from an overseas supplier or fill a gap in your finances.
- Contract finance or invoice factoring: Where you are loaned money based on the value of outstanding invoices.
- Issuing letters of credit: A financial contract that guarantees a buyer's payment to a seller will be received on time and for the correct amount.
Application Process for Trade Finance
1. 60 Second Online Application
We like to keep things simple. Fill out our application form by simply entering your details (and why you need funding) and we’ll get back to you.
2. Hear Back From Us Within 24 hours
Our typical application response takes less than a day, so you’re not going to be waiting around to know your options.
3. Approval & Contract Exchange
Our finance experts will provide you with clear information on your trade loan and repayment terms upfront, so you can make your financial decisions with confidence.
4. Access Funds to Fuel Growth
We get it, you need cash fast. With Funding Guru, you can expect to go from application to money in your account in as little as 48 hours.
Who Can Use Trade Finance?
At Funding Guru, our trade finance solutions are aimed at UK-based importers who receive goods and products from abroad. We specialise in working with businesses that frequently encounter a funding gap between paying suppliers and being paid by customers, and making those periods smoother and less stressful for your business.
Our trade financing solutions remove the doubt from international transactions by guaranteeing payment – so you can focus on chasing opportunities and growing your business with confidence.
The best bit? Trade finance can be utilised whether most of your business takes place in the UK or overseas. We’ll e consider you for trade financing if you are one of the following:
-
Wholesaler:
Put in a large order from your overseas supplier and feeling the pinch? Maybe you need the cash upfront to improve your bulk purchasing power. We’ve got your financing gap covered. -
Supplier:
WGot delayed payments from your buyers? Or has to shell out to deliver on an order. We can help when cash flow is tight. -
Importer:
Let’s say you import your goods from China to sell in the UK. We’ll find the gaps in your cash flow while you’re waiting for your stock to arrive. -
Exporter:
Waiting on payment from international customers? We’ve been there. We’ll finance the gap using the guarantees from your invoices.
How Much Can I Borrow Through Trade Finance?
At Funding Guru, we typically provide trade finance loans of between £100,000 and £500,000.
We make our funding decisions based on a combination of your history and your business’ vision. This means you may still be eligible to borrow if your business has adverse credit but can demonstrate your vision backed up with a solid expansion strategy.
The benefits of borrowing through Funding Guru is that we are transparent about our charges. Whenever you borrow money from us, you’ll know exactly what interest rates and fees you’re going to be paying before you sign. Better yet, we do not charge early repayment fees – we don’t think you should be penalised for paying back your loans early.
Contact our dedicated advisers today to discuss your situation and your vision.
What Are The Different Types Of Trade Finance?
A Funding Guru, we facilitate trade loans and finance for a number of reasons. Here are the main types of finance we offer for international businesses:
Contract Finance
Contract finance gives you a cash lump sum to bridge the gap between taking an order and being paid. It keeps domestic or international contracts moving by ensuring neither party is out of the pocket during fulfilment.
Borrowing is secured against a specific contract or purchase order, rather than your entire ledger, giving you the flexibility to access working capital locked up in the transaction.
Contract finance can be used standalone, or as part of a wider suite of trade finance products.
How Contract Finance Can Help Your Business:
- Boosts your cash flow: Free up more money for working capital or to place more orders.
- Clear repayment terms for confident financial planning: Payment to us is made after the contract is fulfilled and payment from the customer has been received.
- Easier to get, meaning less delays: Because this type of loan looks at the value of a particular contract or purchase order, a lender may place less emphasis on your firm’s trading history.
Import / Export Finance
Sometimes it can be weeks before an overseas customer receives your goods and pays the sum owed to you. Import export finance can bridge the trading shortfall during the time between goods being received overseas and you being paid.
We act as a third party to provide payment for goods as soon as the order has been dispatched. This keeps cash and goods flowing between importers and exporters, even if the logistics of international trade get in the way.
This assurance of payment allows relationships between importers and exporters to be cemented, helping you to build a solid global trade network.
How Import Export Finance Can Support Your Business:
- Greater financial flexibility: By receiving cash more quickly, you can boost your working capital or offer more products
- Clear repayment terms: Payment to us is made after the contract is fulfilled and payment has been received.
Supply Chain Finance
Supply chain finance allows suppliers to be paid quickly, and buyers to lengthen their payment terms. You’ll probably also hear this called supplier finance, receivables finance, or reverse factoring.
Supply chain finance arrangement helps to build trust in global trade relationships by acting as a middle man:
- A supplier issues an invoice
- A financier (Funding Guru in this case) steps in to pay the sum owed immediately.
- The buyer settles the invoice with us at a later date, allowing you to delay the repayments or spread them over time.
How Supply Chain Finance Can Build Your International Relationships:
- Beneficial to both suppliers and buyers: Suppliers get paid promptly but businesses don’t immediately have to find the cash to pay the bill.
- Keeps things flowing smoothly: Payments are made promptly so you can get the order as soon as possible.
- Builds trust between a supplier and buyer: If you settle your supplier invoices quickly, you will build a favourable relationship that could secure you better terms in the future.
- Higher profit margins: Buying in bulk upfront gives you a better opportunity to negotiate a discount.
Letters Of Credit
Letters of credit provide a guarantee from a financial provider that, once the required terms are met by a supplier, payment to them will be made promptly.
This guarantee keeps the international trade wheels moving by reassuring a supplier that they will receive payment for their goods, with the reliance on the finance provider being trustworthy rather than a potentially fledgling company.
How Letters Of Credit Can Provide Stability for your Business:
- A great option for younger companies: By relying on the trustworthiness of your lender, younger businesses can establish themselves in the world of international trading.
- Can be used by a wide range of businesses: Both companies trading internationally or in the UK are eligible to benefit from this type of finance, although more traditionally we see it used in cross-border import/export situations.
Testimonials
Trade Financing Frequently Asked Questions
Am I eligible for trade finance?
Many different types of businesses can be eligible for trade finance. Funding Guru loans are determined on history and vision – and can be secured against existing purchase orders, so credit history becomes less of an issue. Contact our experts to discuss your options.
What are the risks involved with trade finance?
Trade financing is designed to reduce the risk of international business for both buyers and suppliers. But of course there are risks with any international transaction. It’s important to do your due diligence with any international deal to make sure you get paid on time (so you can back your lenders on time).
Does Your Business Require a Secured Loan?
