Trade Finance - The Funding of Purchases

Trade or Transaction finance is “through finance” from supplier through the client to customers who require goods or services. It is “off balance sheet” finance, which does not affect existing bank facilities. The normal simple scenario is that we buy and sell to the client. Upon sale of the product the sales invoice is assigned to us and, from proceeds, we recover our position and pay the profit to the client.

Such finance is used for imports, exports; good both bought and sold in the UK (frequently after manufacture) and even if the goods never touch the UK of Ireland.

• We help businesses that cannot obtain sufficient credit themselves from their UK suppliers. Some are new starts, rebuilds or CVSs. We frequently get our money back from the clients factoring company.
• Company going into a CVA or restart after liquidation will be unable to get credit in the future and have no cash to pay before delivery. We issue Supplier Undertakings to the suppliers. We buy on credit for them recovering from factored debts.
• Substantial capital goods manufacturer needs additional working capital to finance several large export orders. We pay 27 suppliers of time, and recover the debt assigned to us from customers in the UK, Germany and USA.
• Well established boat builder took over the orders of a company in liquidation to build fast offshore power boats under LC to government in Middle East. We financed the build of the boats from start to delivery.