What is Trade Finance?
Trade finance helps your business pay suppliers and manage cash flow when buying or selling goods. Instead of paying everything upfront, a trade finance provider can fund or guarantee the transaction so you can order stock, ship goods and get paid by your customers first. This reduces pressure on your working capital, lowers risk with new or overseas suppliers, and allows your small business to take on larger orders with more confidence.
How It Works
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Facility Setup
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Initial Consultation
Transaction Execution
We analyze your trade cycles and documentation to structure a facility that bridges your funding gaps effectively.
Once approved, your trade finance line is established, providing the liquidity needed to commit to new business..
We facilitate secure payments or Letters of Credit to your suppliers, ensuring goods are produced and shipped without delay.
Goods Release & Settlement
Goods are delivered to your destination. The facility is settled once your customers pay or per the agreed terms.
Eligibility Criteria
• Registered UK Limited Company or LLP
• Minimum of two years' active trading history
• Strong creditworthiness and proven track record
• Confirmed purchase orders or supply contracts
• Clear repayment strategy linked to trade cycle
Trade Finance FAQs
What is Trade Finance and how does it work?
Trade Finance relates to financial products that help businesses facilitate trade. It bridges the gap between the shipment of goods and receipt of payment, providing essential liquidity and risk mitigation for both buyers and sellers.
Who is eligible for Trade Finance?
Typically, UK-based SMEs involved in the import, export, or domestic trade of finished goods are eligible. We look for businesses with a clear trading history, demonstrable orders, and reputable suppliers or customers.
How does this support import and export businesses?
It provides the capital needed to pay suppliers upfront, ensuring goods are manufactured and shipped without draining your current cash reserves. This allows you to fulfill larger international orders and manage long shipping cycles effectively.
What risks does Trade Finance help manage?
It mitigates credit risk (non-payment), currency risk, and supply chain disruptions. By using instruments like Letters of Credit, we ensure that payment is only made once confirmed shipping documents are provided, protecting your business interests.