Trade Finance

The term Trade Finance is is often used to refer to a set of financial products that can assist fund the import and export of goods. This is not always the case, these facilities can also be used to assist with the finance of trade within the UK or between foreign countries.

Trade Finance facilities can work in a variety of ways but what they have in common is that they revolve around arranging a means of paying a supplier, often based abroad, in respect of products that you purchase and providing finance to enable this type of payment to be made.

The cost varies according to the nature of your business and the sector that you trade within. We can advise you on the cost for your company and this is an example of a trade finance price quote that we found for a business recently.

Letters of Credit 

In many cases the supplier may wish to be paid by letter of credit or via a documentary collection and a bank will often require cash cover in order to open a letter of credit creating the financing requirement for the purchaser (the importer if the product is being brought in from abroad).

We have recently seen an increase in the number of businesses approaching us for help finding Trade Finance facilities which may have been driven by favourable exchange rates and the availability of relatively cheap products from abroad.

If you are importing products from abroad it may be possible to bridge the funding gap with a Trade Finance facility. In some cases, our clients also require an invoice finance facility such as factoring or invoice discounting which can be used to repay the Trade Finance element of the facility once the product has been sold on and sales invoices raised, we can help you find all of these elements.

If you would like further advice about Trade Finance just contact us for a confidential discussion.


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Examples of just a few of our finance partners:

funding invoice
lloyds bank
ultimate finance group