This can provide upfront funding against confirmed orders, open up letters of credit facilities on your behalf, and provide direct supplier payments or even a cash advance.
Suitable for businesses who have confirmed purchase orders/supply contracts from reliable sources. You can secure stocks but you have limited working capital to fund the purchase.
How does it work?
Using a Trade Finance facility is straightforward:
- Place your order with your supplier
- The Trade Financier will pay your supplier against shipping documentation or open a letter of credit for up to 100% of the purchase price of the goods
- The goods are shipped and ultimately delivered to the client's customers
- The client will repay the transaction either by way of:
- Within 90 days from the transaction date
- Through a linked to invoice finance facility