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Trade Finance is provided by a lender to bridge the gap between an order being received and the goods being delivered /sold.

Can cover both importers and exporters and usually involves either Transactional Finance or Stock Finance.
Transactional Finance involves the lender acting as intermediary between importer and exporter, usually through issuing Letters of Credit or Documentary Letters of Credit which give both parties additional security/comfort. Other funding methods are available dependant upon the particular circumstances.
Credit Insurance can be included to provide protection against possible bad debts.

Stock Finance also often covers goods in transit but can additionally be used to fund stock already purchased and warehoused against confirmed orders.
Stock Finance can be a useful source of working capital, particularly for larger turnover businesses, those that are stock intensive or have a seasonal requirement.
This type of facility is often “packaged” with lending products such as an overdraft or increasingly an Invoice Finance facility.
Trade Finance is a specialised area dominated by the Banks and a number of smaller niche players which cater for particular needs. Getting the right “package” is essential and our experts will help guide you in the right direction.