Trade finance is an important external source of working capital financing. It is a form of short-term credit typically used by companies that export or import goods.
Trade Finance
Trade finance is an important external source of working capital finance. It is a form of short-term credit typically used by companies that export or import goods. It is relatively easy to secure short term finance, if you have a strong trading record, secured against goods or backed by an insurance policy.
There are a number of banks and specialist finance providers on the Finpoint funder panel that offer trade finance across the world.
Facts before you apply
Also known as purchase order finance or supplier finance, trade finance means our selected lenders will fund your supplier upfront based on confirmed orders. Trade finance is a popular and proven method of allowing SMEs to increase their business and trade confidently
Funding
£1,000 to £1.5m
Repayment Terms
1 month to 2 years
Typical rates?
From 0.89% per month
All interest rates quoted are indicative only as rates will only be confirmed based on the risk profile for each deal. Risk category associated with the deal. This is based on primarily debt survivability and security available for the loan
Advantages of Trade Finance
A relatively easy way to arrange short-term finance which often can be arrange in a few days
It helps business to focus on growth activities
The finance is typically secured against the goods but these may also be backed by an insurance policy
Things to be aware of…
It is usually based on having a good track record in terms of operations and repayments, and therefore less accessible for new companies
It can become very expensive, if payments are not made on time
