What is Trade Financing?

Purchase order finance, import finance, or trade financing is a type of project financing where a supplier borrows funds to fulfil an order placed by a customer. This page briefly discusses trade finance.

Understanding Trade Financing

Trade finance empowers trade deals by bridging the funding gap between paying suppliers and receiving customer payments.
Generally, trade financing refers to short-term loanssuppliers obtain to add flexibility, ease, and liquidity to import or export deals.
This mode of financing is ideal for exporters, importers, distributors, and wholesalers because it helps them obtain the requisite funds quickly.

    When to Consider Trade Finance?

    Applying for trade finance is recommended for any of your confirmed orders, and at the start of the sales process. Trade Finance can be applied for after getting the purchase order (PO) from your buyers.
    Having early access to your funds will enable your business to source the required products rapidly and supply them to the buyer on an agreed schedule. The loan amount can be repaid after receiving payment from your customer or can be rolled into a revolving facility with the lender subject to certain agreed financial credit limits.
    [Asset Finance UK Limited] can help you secure trade finance and allow your company to expand if you are importing or exporting goods to a buyer.

    Reasons to Choose Trade Financing

    Flexibility of Payment

    It allows suppliers to fund the project.

    Most Convenient Trade

    It allows suppliers to trade with ease.

    Smoother Business Process

    It simplifies complex processes.

    Better Transaction Flow

    It helps suppliers avoid delays.