Trade Finance

Trade Finance is a specialist means of providing funding for international trade

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The Trade Finance process

Apply For Finance

You receive an order and source goods from your overseas supplier to complete the work.

Supplier Payment Approved

The financier verifies the order with your customer and arranges payment to your supplier.

Complete the Order

You receive the goods and complete the customers order, raise an invoice and copy it to the financier.

Customer Pays Invoice

The customer pays the financier directly and in full. the remaing value is released less the financiers fees.

Trade Finance provides funding for goods as they are transported internationally from the seller to the buyer. Trade Finance is complicated service with many facets and specialist knowledge is required in order for an effective product to be sourced. For more information, or if your business is looking for a Trade Finance solution to help expand or develop, get in touch today.

What is Trade Finance?

Trade Finance is a general term which refers to the use of a number of financial products in order to fund international trade. Trade Finance provides a way to ensure that both the importer and exporter are funded throughout the transaction, meaning that your business will always have working capital available to meet its day to day obligations. Trade Finance is a notoriously complex solution which many brokers struggle to source, as it can involve several products which will need to work harmoniously in order for the service to be effective. For this reason, Invoicediscounting.com’s exceptional industry knowledge makes us an invaluable asset for any business seeking to expand or develop its overseas operations.

How does Trade Finance work?

Trade Finance is a complicated product with many potential variations depending on the specific circumstances, which is why it’s important that advice is sought from a professional broker such as Invoicediscounting.com. In its simplest form however, Trade Finance boosts the cash flow of your internationally trading business, typically through a mixture of means, such as Invoice Financing and lendings. Whether your business is importing or exporting, Trade Finance will bridge the gap between you raising an invoice and receiving payment from your customer, ensuring that your business will always have cash on hand in order to meet its financial obligations. For a thorough breakdown of exactly how Trade Finance can benefit your business and what it would entail, contact Invoicediscounting.com today.

What are the benefits of Trade Finance?

Improved cash flow – Trade Finance improves your cash flow by providing funding in-between paying your supplier and being paid by your customer. This means you can tender for new business and start work on new orders without delay as your cash won’t be tied up. It can help improve supplier relationships and possibly allow you to secure early settlement discounts.

Confidence to grow – Improved cash flow can demonstrate your liquidity to suppliers, encouraging them to do more business with you. Specialist hedging products can offer you protection against currency fluctuations and when combined with other insurance products can reduce the risk of importing and exporting – giving your business the confidence to expand.

Accessibility – 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 accessibility is often vital for new or growing businesses.

Flexibility – This type of finance frees up existing lines of credit for other business purposes. When using Trade Finance facilities it’s often possible for you to repay bank facilities and release previously pledged security. Some Trade Finance providers are also prepared to provide finance against other assets, or even unsecured loans, as part of a packaged solution.

Management Time – Using trade and invoice finance facilities together frees up valuable management time as it takes over the paperwork involved in paying the supplier (including raising Letters of Credit) and provides a cost effective way of outsourcing your purchase ledger management.

How can Invoicediscounting.com help?

Trade Finance is a complicated product and most brokers only know a couple of niche Trade Finance providers. Most brokers also often have very little knowledge of the subject, which may mean you waste precious time at best and at worst you may be passed to inappropriate providers and sold ill-suited products. The knowledge of Trade Finance possessed by the team at Invoicediscounting.com is extensive, and includes expertise in Letters of Credit, shipping and freight, marine insurance, together with warehousing, VAT and duty facilities. This makes Invoicediscounting.com best placed to advise your business and source appropriate Trade Finance solutions.

At WF Finanical Solutions we work closely with a wide range of finance providers so we are well placed to offer you the dest finance deal.
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