The delays and complications when with trading goods overseas can greatly impact a business’s cash flow. Import finance helps overcome these challenges, which frees up working capital for the growing business.
Trade finance allow buyers to be able to access an uninterrupted supply flow as they provide liquidity to their suppliers. This helps to reduce the risks of selling overseas. Facilities allow simple payment processes to be created and also improve relationships with overseas suppliers.
Regional market knowledge and expertise in a wide variety of industries mean that financial solutions can be created to meet your objectives. As a result, a company can explore the potential opportunities to trade wherever there is an opportunity, This is coupled with the knowledge that a trade finance provider can support your transaction throughout its life cycle.
Trade finance offers many benefits, as it provides you with the ability to pay your supplier for the purchase of goods. A facility is usually offered with invoice finance as a way of bridging the gap between the receipt of funds through sales and actual payment of goods to sell. By using these types of facilities, it provides improved cash flow so allowing a business to tender for new business and move quickly when there are new orders without delay as money will be freely available. This can assist with improving supplier relationships and possibly allow securing of early settlement discounts. The demonstration of liquidity to suppliers and other business contacts promotes trade between the companies and enables the expansion of import with less financial risk.
Using trade finance can assist when the financial track record of a company is not extensive or security is difficult to negotiate. Also, having a facility in place will assist when it is difficult to get sufficient overdraft facilities or credit from suppliers.
Trade finance promotes flexibility as it frees up existing lines of credit for other business purposes. Due to the various structures and funders that are available in the trade finance sector, there is usually a possibility to repay existing facilities and release previously pledged security. There may also be the possibility to provide finance against assets that a bank may not have previously accepted or receive an unsecured package. Using a facility on offer will allow more free time for management as paperwork involved in paying the supplier and outsourcing of purchase ledger management is taken over by the financier.