Trade Finance is a purchase finance facility that is available from selected funders, although in most cases will have to be supported with an invoice finance/receivables facility. Trade Finance offers a funding facility which allows you to purchase finished goods or goods with confirmed orders without utilising your own cash flow. The funder pays for the goods and the trade transaction is then repaid by the raising of the invoice to the invoice finance facility – it is an end to end funding facility, most commonly used by those who import goods from abroad and don’t enjoy favourable terms from their suppliers.
Important requirements are having a confirmed trading history in the sector the funding, being profit making and having a robust audit trail, as the paperwork is key for the funders to understand whether they will be able to support the facility. At Breadalbane Finance, we have a panel of funders who offer Trade Finance for startup to multi-million-pound facilities.