Trade Finance

Trade Finance is a funding mechanism that enables a company to obtain finance in order to purchase goods in that are needed to satisfy an order. Trade finance is used to bridge the funding gap between purchase and sales.

By utilising trade finance, companies are able to dramatically improve their profit margins. By paying suppliers directly or opening a letter of credit trade finance specialists can fund between 80% to 100% of the cost of goods plus duty and VAT. Trade finance facilities are complimentary to existing funding arrangements and can enable businesses to expand rapidly.

It is important to understand that getting paid on time is crucial for any business, this can be a problem when a company is trading overseas. Financing export activities can place a huge strain on any business, this is why it is crucial to keep in control of the payment arrangements already agreed with customers. It is also crucial to use proper credit control procedures. You must also be aware that currencey exchange fluctuations play a huge part with any business that trades overseas.

There are many risks involved in trading overseas, from non payment to damaged or faulty goods. These problems can be illeviated by having a suitable insurance policy in place.

At Business Services UK our consultants are experts in the field of trade financing, over the years we have developed a large portfolio of companies that provide this type of specialist funding. If you would like a free consultation on how trade financing can improve your business, then simply click the Contact Us button below.