What is trade finance?
Trade finance is a product which eliminated the gap between paying a supplier and receiving payment from a buyer. Typically, it’s used more in international trade than domestic.
How does trade finance work?
Trade finance is often a more complex finance arrangement, as it varies upon not only each customer, but each transaction.
Many trade financiers will finance the project only once a purchase order has been received however trade finance is now also available without the need for the goods to be “pre-sold”.
What are the benefits to trade finance?
- Enables other funding products to be used for alternative areas of the business
- It bridges the gap between paying suppliers and receiving payment from customers
- Once you’ve proved it works, and you’re a “good client”, they’ll tend to be more agreeable