Lack of available funds can dramatically reduce your buying power with suppliers and restrict your company growth. Particularly when you find yourselves having to turn down larger orders because you are unable to fund them. This is where Trade Finance could help.
Trade Finance bridges the funding gap between paying your suppliers and receiving customer payments. The Trade Finance provider will pay your supplier for the goods on your behalf. You pay the Trade Finance provider back once the goods have arrived with your customer. Either through your own resources or you can use Invoice Finance to facilitate this.
Alternatively you may wish to consider a revolving trade finance facility which can be used for the purchase of goods for stock. The Trade Finance house would pay your supplier for the goods on your behalf. You then have typically up to 90 days to repay this balance to them.
By using Trade Finance, you can take on larger orders knowing that you have the funding available to pay your suppliers. This helps to preserve your day to day working capital. It also helps you to increase your business growth and profitability. Purchasing in larger quantities and paying promptly also gives you the opportunity to negotiate keener prices with your suppliers as part of the process. Your suppliers may also grant you larger credit limits as a result.
Trade Finance is available for both international and domestic trade transactions.