Trade Finance Solutions
Bridge the funding gap between customers paying and suppliers being paid, with a bespoke finance package based on your trading cycle.
Trade Finance Solution to Keep Things Flowing
Our borrowing facilities can facilitate domestic trade or international imports and exports. Reassure your suppliers they will receive payment; mitigate your risk of not being paid
What is Trade Finance?
This type of finance is the financing of international trade flows. Trade finance makes it possible and easier for importers and exporters to transact business through trade. Trade finance is an umbrella term meaning it covers many financial products that banks and companies utilise to make trade transactions feasible.
Trade finance covers different types of activities such as issuing letters of credit, export credit, lending, financing, and factoring. The process involves several different parties, including the buyer, seller and the trade financier.
Who should use Trade Finance?
This funding solution is suited to businesses who frequently encounter a funding gap between paying suppliers and being paid by customers. Trade finance removes doubt from transactions by guaranteeing payment and ensuring things keep moving.
Businesses in fast-paced industries, who rely on strong supplier relationships, can benefit from trade finance. Trade finance can be secured whether most of your business takes place in the UK or overseas.
What is Contract Finance?
This is a short-term finance product designed to bridge the gap between taking an order and being paid. 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. It can be used standalone, or as part of a wider suite of trade finance products.
Contract finance keeps international contracts moving by ensuring neither party is out of the pocket during fulfilment. Take the stress out of chasing overseas payments, and enjoy a buffer for late payments.
Why choose Contract Finance?
The aim of this finance solution is to help businesses expand, by giving them the working capital boost they need to fulfil international export contracts. By gaining immediate access to payment, you are able to keep the wheels in motion and ensure successful fulfilment of the contract your borrowing is secured against.
Repayment to the lender is made after the contract is fulfilled and payment has been received. Because this type of loan looks at the value of a particular contract or purchase order, the decision to lend may place less emphasis on the trading history of your organisation.
Letters Of Credit
What are Letters Of Credit?
A letter of credit outlines the specific terms to be fulfilled before payment will be made in a trading relationship. The letter provides a guarantee from a financial provider that, once the stipulated terms are met, payment will be made.
This guarantee keeps the wheels of international trade moving by reassuring a supplier that they will receive payment for their goods, with the reliance on the trustworthiness of the finance provider rather than a potentially fledgeling company.
Who are Letters Of Credit suitable for?
Thanks to the reliance on the trustworthiness of the lender, this type of finance are suitable for younger companies establishing themselves in the world of international trading. Businesses 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.
Import Export Finance
What is Import Export Finance?
This finance solution can bridge the trading shortfall between goods being received and the payment is made. We act as a third party to provide payment for goods in order to keep cash and goods flowing between importers and exporters, even if the logistics of international trade – things like currency payments and credit assessments – 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.
Who is Import Export Finance suitable for?
Businesses looking to scale their import or export operations can benefit from import-export finance, as they are given the financial flexibility to boost their purchasing power. This finance solution also increases your competitive edge, by ensuring the supply chain keeps moving, and relationships aren’t soured by delayed payments.
Supply Chain Finance
What is Supply Chain Finance?
This is a short-term finance solution designed to keep an international supply chain moving at optimum speed. This is achieved by allowing suppliers to be paid quickly, and buyers to lengthen their payment terms. You may also hear this called supplier finance, receivables finance, or reverse factoring.
The focus with a supply chain finance arrangement is to build trust in global trade relationships. A supplier issues an invoice, then a third party steps in to pay immediately. The buyer settles the invoice with the third party later, meaning that the speed and creditworthiness of the third party are used to keep things flowing smoothly.
Who is Supply Chain Finance suitable for?
Businesses who operate largely overseas are best suited to supply chain finance, as it helps to minimise the risk involved in such transactions. This type of finance is mutually beneficial: buyers stand to benefit from the ability to extend their payment terms without impacting the supplier, while the supplier receives payment instantly.
This boosts relationship strength and facilitates growth for both parties. If you are looking for help to fulfil large international orders, supply chain finance could be for you. Because you are borrowing against accounts receivable we are able to look past less-than-ideal trading histories.
Why should you use Trade Finance?
This funding solution is suited to businesses who frequently encounter a funding gap between paying suppliers and being paid by customers.
Trade finance removes doubt from transactions by guaranteeing payment and ensuring things keep moving.
If you’re looking to strengthen trade relationships by guaranteeing transactions, letters of credit may help. This assures sellers that they will receive payment, and can allow you to negotiate better terms with suppliers.
With an import-export finance solution, we act as a third party to fill the gap between your business receiving goods and sending payment for importers and exporters.
Supply chain finance is great for businesses looking to free up cash flow. You sell your invoices to us as soon as they are approved by buyers, giving you immediate access to the money.
Contract finance is a short-term loan that can provide working capital to fulfil an export contract. The contract acts as collateral if no other is available.
We make our funding decisions based on a combination of an applicant’s history and vision, meaning you may still be eligible to borrow if your business has adverse credit but can demonstrate vision backed up with a solid expansion strategy.
Businesses in fast-paced industries, who rely on strong supplier relationships, can benefit from trade finance.
Trade finance can be secured whether most of your business takes place in the UK or overseas.
We aim to make funding decisions within 24 hours of receiving an application. Money should be in your account shortly after that!
No. We don’t think our customers should be penalised for paying back their loans early.
Fund your future today. Our team will find the perfect Trade Finance Solution for you. Move your business forward with Funding Guru.