TRADE PAYMENTS TO HELP YOUR BUSINESS SUCCEED
If you are an importer but funding is the one thing that holds you back from taking advantage of purchasing or sales opportunities – Trade finance could be perfect for your business.
WHAT IS TRADE FINANCE?
Put simply, trade finance is where an exporter (your supplier) requires you to pay upfront for goods shipped.
It provides a way to ensure that both you and your supplier are funded throughout the transaction, meaning that you can take advantage of “deals” when importing goods.
HOW DOES TRADE FINANCE WORK?
Trade finance is bespoke from customer to customer depending on lots of facets; the goods, the shipping terms, quality of customer etc etc.
Because of this, it works differently each time and so it is important that you speak to a specialist that has knowledge of trade finance and can talk you through the potential for you.
- Trade Finance improves your cash flow by providing funding in-between paying your supplier and being paid by your customer.
- Improved cash flow can demonstrate your liquidity to suppliers, encouraging them to do more business with you.
- Trade finance is ideal if your business does not have the financial track record or security to negotiate sufficient overdraft facilities or get credit from your suppliers.
- This type of finance frees up existing lines of credit for other business purposes.