A special kind of scale-up funding, trade finance funds are designed specifically to support the purchase and sale of goods between importers and exporters. It gives businesses the funds to expand their market beyond their borders.
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 that might have been tied up in goods still yet to arrive from abroad.
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 will 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.
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.
If you’re considering trade finance in Manchester, get in touch with us today. One of our specialists will be able to advise you on how to get started with tailored advice for your business.
Where the strength of the transaction is the safeguard of repayment, such as stock finance where the lender assumes title to the goods in the vent of non-repayment, facilities for trade finance can be arranged in less than 1-week with co-operation from all parties.
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