Trade Finance is a line of credit that is available to make direct payment to your suppliers for the purchase of stock and / or raw materials.
The funding line is suitable to both domestic and international supply purchases. Traditionally clients with international purchases have utilised the facility due to lengthy delivery times and therefore ensuring cash flow is not being tied up during this period.
As the trade finance facility has terms of up to 150 days (per drawn down), this generally exceeds trading terms offered by majority of suppliers.
Other key benefits of a trade facility are as follows:
- Provides ability for customers to engage with new suppliers without the need to pay COD or seek credit terms
- Purchase bulk stock to take advantage of discounted prices
- Even out the cash flow of the business by obtaining extensive trading terms
- Negotiate with existing suppliers for reduced costs for exchange of prompt / COD trading terms
- Assists in accelerated growth of a company by funding necessary supplies to allow a company to take on further supply contracts or additional product lines