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Trade Finance

Trade finance helps businesses buy and sell goods across countries, making global trade easier.

 



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What is trade finance?                      
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Eligibility and exclusions                   
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Benefits and scenarios                     
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Risks                                                
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       Things you can use to secure the finance
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Is trade finance a good fit for you?    
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What is trade finance?

 

A special kind of finance, trade finance is designed
specifically to support the purchase and sale of
goods between importers and exporters. It gives
businesses the funds to expand their market beyond
its borders.

Eligibility and exclusions

 

Trade finance is a broad term use to describe
funding for many kinds of international business
activity. Usually, businesses involved in international
trade activities, and have a reliable track record
of trade transactions, are often eligible for trade
finance.

 

Benefits and scenarios

 

Trade finance helps you access additional funds
to explore new markets abroad and trade at a global
level. It opens your customer base wider as well.

International trade finance has the advantage of having
a lower information requirement, as it relies on the
strength of the transaction. Trade finance gives you 
access to working capital which might have been tied up
in goods still yet to arrive from abroad. 

Risks

 

Trade finance can be an expensive form of financing.
This is because there is a higher risk involved for the
lender. 

There’s a chance that the businesses you deal with
overseas default on payments, which could have a
negative effect on your business. 

It can also be a complex means of finance as it can
involve a range of differing financial instruments like
letters of credit.

Things you can use to
secure the finance

 

To secure trade finance, you usually need evidence
that your business has international operations and
is in a sound financial position. Having a record of
trusted suppliers and customers, and consistent trade
patterns will improve your chances of securing access
to trade finance.

Think trade finance could be a
good fit for you?

 

Speak to one of our finance specialists today
to find out how you can get started.

Find out more: 

This is information, not financial advice or recommendations

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The information does not constitute financial advice or recommendation and should not be considered as such.

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