Trade Finance Overview
You want the funding to fulfil a confirmed order or an individual sale, to a creditworthy customer.
We understand how frustrating it can be when your working capital is locked away in your business. You can find yourself in a catch-22 situation. You have a big order, but the funds you need to fulfil it are tied up. And you can't access those funds until the order is delivered. So you are forced to watch crucial deals disappear. It's a situation you need never experience again with our Trade Finance funders.
Trade Finance - How Does It Work?
- We can arrange advances up to 90% of the confirmed order value, to pay your supplier.
- The lender pays your supplier or open a letter of credit.
- You deliver the goods and the lender invoices your customer once goods have been delivered to and accepted by them.
- The lenders charge you between 1% and 4% of invoice values.
- Any monies available up to 90% of the sales invoice value, less the amounts paid to your suppliers, less the lenders fees can be used.
- Most lenders Trade Finance services collect the money from your customer and pay you the balance between the order value and the amount paid to your supplier, minus their fees and cost of money used, once payment has been received by them.
Sales Facility
You want additional funding to finance single or multiple transactions with creditworthy customers.
How Does It Work?
- You deliver the goods to your customer obtaining proof of delivery and acceptance of the goods.
- You invoice the lender for the goods at an agreed discount, usually between 1% and 4% of the sales price.
- The lender advances you up to 90% of the value of your invoice.
- The lender invoices your buyer for the full amount and collect payment according to your agreed terms.
- The lender pays you the balance less their administration fees and cost of money used, once payment has been received.
- Purchase Facility Linked to a Factoring Facility
You have a confirmed order from a creditworthy customer but lack the cash to fulfil it.
How Does It Work?
- With Trade Finance service you place an order for the finished goods with your supplier.
- The lender pay's your supplier or opens a letter of credit.
- You deliver the goods and invoice your customer.
- You then send a copy of the invoice to the Factor who repays the lender from your availability.
- The Factor collects payments from your customers and pays you the balance less their fees once your customers have paid.
Trade Finance - How Much Does It Cost?
Lenders generally charge an administration fee of between 2% and 3% of the order value to your supplier, and a fee for the cost of money used.
As an independent finance intermediary we can assist with:
- Preparing a business plan
- Sourcing appropriate lenders
- Compiling the finance application
- Negotiating with lenders for rates and terms
- Managing the process of finance delivery
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