Trade Finance
Key Features
Is a method of enabling a transaction, which could not be financed with a company's working capital facilities.
The transaction will typically have a margin of 20% or more, for finished goods which are mainly pre-sold to one, or a few, customers of good credit standing, who have supplied an unequivocal order in writing.
Suppliers will have a track record in producing similar products, to a consistent and acceptable standard.
Who is it for
Companies, whose management have experience in their marketplace, and a good working relationship with their potential customers and will have researched their suppliers ability to produce goods on time to an acceptable quality.
Benefits
- Doesn't need to affect other bank facilities
- Greater level of finance than existing facilities
- Advice on securing order and delivery process for new importers
- Costs are directly recovered from the margin in the deal
- Costs of shipping and inspection can be included in the finance
- Can be tied in, to invoice finance, when goods are delivered.