Trade finance is a ‘catch-all’ term for a number of financial products that can be used to fund international trading. Trade finance can become very complicated as there are many facets and specialist knowledge is required for an effective product to be sourced for your business whilst keeping cash flow, expansion goals, and meeting deadlines in mind.
This product has many potential variations depending on your specific circumstances, but it can be potentially useful for boosting the cash flow of your international trading business. Typically funders will use a mixture of options that they deem most appropriate for your business and they will consider invoice finance, letters of credit, and lending.
This financing solution can provide a way to ensure that both importer and exporter are funded throughout the transaction, so your business will always have working capital available to meet its day-to-day obligations.
As trade finance can be notoriously complex and involve several products working seamlessly for the service to be effective, we can help you find the right funder who has the expertise and experience required to not only finance your business needs but provide you with the support needed in this multifaceted area.
Why Trade Finance?
Trade finance is a great way to help you obtain the goods you need from overseas without affecting your cash flow. It can also help you to build trust with clients and suppliers, as both parties will not be forced into a position where you are left waiting months for payment.
Funders of trade finance look to garner good relationships with both sides and work with you both to provide the service you require by communicating in a range of languages and providing finance in your preferred currency whilst keeping current interest rates in mind.
Whether you’re importing or exporting, you can benefit from the advantages of trade finance. For example, if you opt for invoice finance, you will raise an invoice which is passed to your funder who pays you a percentage of the invoice value.
Trade finance is suitable for businesses which are already trading internationally, or are looking to expand their reach into international markets. With a vast range of trade finance solutions available, we would suggest you contact our expert brokers to discuss the best options for you based on your exacting business needs.
Strong cash flow
Trade finance can help you to improve your cash flow by providing funding between you paying your supplier and you being paid by your customer. This allows you to tender for new business and start work on new orders as cash isn’t tied up which can help improve supplier relationships, possibly allowing you to secure early settlement discounts.
This can be ideal if your business does not have the financial track record or security to negotiate sufficient overdraft facilities or get credit from your suppliers, this can often be vital for new or growing businesses.
Using trade and invoice finance facilities can free up valuable management time as it allows you to pass the paperwork involved in paying the supplier to your funder (including raising letters of credit) providing you with a cost-effective solution for outsourcing your purchase ledger management.
What our clients say
“I have worked with Bespoke for several years now and have built up a very trusting relationship with the team. They’re always professional, deal with customers very fairly and ensure they’re offered the most effective solutions to meet their needs. I have no reservations in dealing with Bespoke and their abilities to provide suitable solutions for customers.
— Scott Campbell
Head of Barclays Business Sales
I have recommended Bespoke’s services to a number of our clients, both that have existing factoring facilities and also to clients who are looking at their financing options. The service provided has always been exceptional and the feedback from these clients has been nothing but praise. I would therefore highly recommend the Bespoke team.
— Tim Pearce
Managing Partner, Haines Watts
We contacted Bespoke as we were looking for an invoice finance facility to support the business due to our fast growth. They didn’t disappoint! They gave us first-class advice and support and within a week had provided us with a choice of competitive funding options. Bespoke worked with us through the decision process and helped us secure a finance facility which was ideal for our business and offers the flexibility for future growth. A-first class service throughout.
— Paul Davison
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