GROWTH
Financing your trade cycle lets a business reach it’s potential by not slowing sales due to the upfront cost of bringing goods into the UK.
the low down
Is a Trade Finance Loan right for you?
Trade finance is a valuable financing solution for businesses that import goods into the UK. It covers the cost of goods while they are in transit from their country of origin to a manufacturer or buyer in the UK.
While trade finance can be used simply to bring stock into the country, it is most commonly utilised when a business has a purchase order and needs to procure goods from abroad. This is particularly beneficial for goods that take time to arrive, such as those shipped by sea, which can typically take up to 60 days. The trade finance provider pays the supplier directly for the goods, with the understanding that the end customer will pay for them upon arrival.
The cost of a trade finance facility is usually based on a monthly interest rate, making it more cost-effective when goods are brought into the country quickly.
How a Trade Finance Loan (Trade Loan) Works:
- Supplier Invoices the Trade Finance Lender: Once the goods are shipped, your supplier sends the invoice directly to the trade finance lender.
- Customer Pays the Trade Finance Lender: Upon the goods’ arrival, your customer pays the lender for the goods.
- Lender Pays You the Profits: After deducting any fees, the lender then transfers the profits to you.
In some cases, particularly when using invoice finance, there may be a variation in this process. With invoice finance, the funds from the customer’s invoice are used to repay the trade finance facility, creating a seamless financing solution that supports your entire working capital cycle.
At Sedulo Funding Solutions, we have access to the whole UK finance market and we make business finance easy.
Fancy booking a call (or meet-up) with our team of experts? We can get you a no-obligation quote.
SECURITY
With the security mainly being the goods in transit, limited personal security is required.
FLEXIBILITY
With costs being levied per month as opposed to annually, it gives flexibility on costs and allows a business to keep more margin.
Calculations Made Easy
Bring your ideas to life, fast
With access to over 150 lenders, we can help make your plans a reality.
Recent deal
Asset Finance facility for a UPVC windows and doors installation business
The business required a new van to complete ongoing projects faster, whilst allowing the business to take on more projects.
Funding Stories
Sonny Wilson
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Recent deal
£150,000 for an insulation contracting company in just two days
The business needed working capital so they could make repairs to a van and begin a new and exciting project.
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Sam Wells
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Recent deal
60k credit facility arranged for a car sales business
The business required funding to purchase stock and obtain a facility, which they could dip into as needed.
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Sonny Wilson
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Our Answers To Your Questions
We’ve put together a list of common Business Loan FAQs. If there’s something you want to know and you can’t find the answer here, get in touch with our team of finance experts.
Trade finance can be used to finance a wide range of goods, including raw materials, finished products, and other inventory items that are being imported into the UK. It is particularly beneficial for goods that require significant lead times due to shipping.
If your customer fails to pay for the goods, it is essential to consult with your trade finance provider immediately. The provider may have specific terms in place for dealing with non-payment, and in some cases, credit insurance or other risk mitigation strategies may be used to protect your business.
Arranging trade finance can be a relatively quick process. Many providers offer streamlined application processes to ensure that your goods can be financed and shipped without delay.
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Lenders
A Team Of Finance Experts, On Your Side
Whether you’re looking to obtain funding to take on the next stage of business growth or access working capital to cover costs, it’s important to have a team of experts on your side.
Our experienced funding team operates out of each city centre office in Manchester, Leeds, Liverpool, London and Birmingham. We’re available to meet face-to-face so that we can better understand your business and talk you through your funding options, or we can assist over the phone – whichever you’d prefer!
Speak to an expert and start your business growth journey.
