Trade Finance allows a business to grow its sales ledger without the additional cash-flow pressure of the up-front payments to its own suppliers, by making payment directly to those suppliers to secure goods for onward sale when credit is not available - also see 'Bonds'
These facilities effectively 'bridge the gap' between placing orders with suppliers and getting paid by customers
Pre and post shipment finance structured in line with supplier payment terms can soon offer peace of mind, particularly when lead times between making a deposit payment to a key supplier of goods, and receiving payment from onward sale of those goods can be extensive.
Importing and exporting can be 'key' to business growth, but businesses which are inexperienced in the intricacies of these trading cycles, or which need guidance to help manage cash-flow, often don't have direct access to support and advice in these specialised sectors.
B2B Cashflow Solutions provides this expertise. Our qualified Trade Finance Consultant (AMIEx / CITA), works with UK businesses to fully understand all aspects of the transaction model, particularly focusing on payment terms which will determine the funding gap.
Our subsequent report aims to mitigate any risks which can then be shared with the bank relationship, and we are always happy to accompany our business clients when meeting the Bank Relationship Manager to discuss and negotiate any strategic adjustments where necessary.
Call 01508 494 345 or email us
Naturally, the bank relationship should always be the primary support platform for trading businesses, however, where this support is unavailable, we have developed an independent platform of Trade Financiers, including Government-backed lending through UK Export Finance (UKEF), to help support UK businesses.
With particular focus on imports and exports in the current climate, B2B offers a golden opportunity for business growth.
How does it work?
- Suitable for non-perishable, non-hazardous, and non-contentious goods
- Can be used for one-off transactions or regular ongoing business
- The lender pays the supplier against shipping documentation, or open letter of credit for up to 100% of the purchase price of the goods
- The goods are shipped and delivered to the end buyer
- Within 90 days the lender is repaid by the end buyer against the sales invoice either directly or via the borrowing (supplying) business