Trade Finance
Positive Invoice Finance can help provide a Trade Finance Facility for you and your company.
A Trade Finance facility arranged by Positive Invoice Finance provides the funds for you to pay your suppliers so that goods are released and you can fulfil that important order.
Trade Finance is available in conjunction with a factoring or invoice discounting facility and is an excellent method of improving your company’s cash flow.
A Trade Finance facility organised by Positive Invoice Finance ensures all confirmed orders can be fulfilled.
Stocks and supplies for orders received from credit worthy customers can be 100% funded by the factoring company or invoice discounting company. The factoring company or invoice discounting company pays the supplier, so you are able to fulfil your customers order and an invoice is raised, against which funds are raised to re-pay the factoring company or invoice discounting company, with the balance (less fees) returned to you.
Trade Finance is ideal when importing goods into the UK – call Positive Invoice Finance today to see how a trade finance facility can help you.
Trade Finance is also known as Import Finance and it will help you to close the funding gap between an order from a UK customer placed on credit terms, and the payment demanded by your supplier – the supplier could be based in the UK or overseas.
Trade Finance or Import Finance eases the pressure on cashflow and takes care of some potentially complex paperwork and procedures. With Trade Finance or Import Finance, a funder can fund up to 100% of your overseas purchases, including freight, duty and VAT, all the way to the point that your customer pays your invoice – thus helping you to satisfy your customers demand.
Some funders can, as part of the service, raise and manage the Letter of Credit (LC) with your supplier, reducing the risks associated with importing, and reducing complicated paperwork – Positive Invoice Finance can help provide these facilities for your company. Trade Finance or Import Finance will remove all the uncertainty and financial unpredictability out of the import equation – and can give your cashflow a huge injection, right from day one.
Trade Finance can also be used in two ways:
Buying and Selling Goods
If you want assistance 'buying and selling goods,' not only will Positive Invoice Finance arrange a facility that will provide up to 100% of the upfront funds to pay your supplier, but the facility can be used to also release up to 85% of the value of the invoices raised against those orders. In addition to this the Factoring or Invoice Discounting provider can also provide a tailor made invoice collections service where the factoring or invoice discounting provider will chase and collect outstanding payments from your customers on your behalf. They will prepare and send out statements, telephone all your customers, collect payments for you and maintain professional and detailed accounts of your transactions.
Buying Goods
If you need assistance ‘buying goods’ and have a confirmed order but do not have the funds to fulfil it, the factoring or invoice discounting provider will provide up to 100% of the total order value upfront to help you complete that order. The factoring or invoice discounting provider will pay your suppliers for you and collect the monies from your customers once they have received the goods. They will then refund the monies to you minus an administration fee and purchase payment. So if you are purchasing non perishable finished goods - Trade Services can help.
Trade Services - How Much Does It Cost?
Trade services solutions are tailored to your business so the fees will depend on your own unique requirements.
Trade Finance - How Does It Work?
• You receive a confirmed order from a credit worthy customer
• The Factoring or Invoice Discounting Provider will advance up to 100% of the purchase price to pay your supplier
• You place the order with your supplier for the finished goods
• The provider pays your supplier or opens up a letter of credit
• You deliver the goods and invoice your customer, sending a copy of the invoice to The Factoring or Invoice Discounting Provider
• They release up to 85% of the total invoice value, retaining the original monies that were released to your supplier at the beginning of the transaction. We will then return the balance, less their fees to you.
• The factoring or invoice discounting provider will then chase and collect payment from your customer and return any profits to you.
FAQs
How long will a Trade Finance facility take to set up?
A trade finance facility can be set up in a matter of days by a factoring or invoice discounting provider
How much will a Trade Finance Facility cost?
Each trade finance facility must be looked at individually and Positive Invoice Finance will go to the market and find the right Trade Finance facility for you – at the right price.
Can I use Trade Finance to fund the purchase of imported goods?
A Trade Finance facility is ideal for using on imported goods.
More FAQs
Case Study
The Factoring or Invoice Discounting Provider was approached to assist a start-up business in importing and distributing 19” Flat Panel LCD TVs to a major UK retailer. The China based supplier required payment via a Letter of Credit (“LC”) with the order prior to production. The Factoring or Invoice Discounting Provider raised the LC to cover 100% of the cost of the goods value. The funder also agreed to cover all freight, duty and VAT costs in order to import the goods into the UK.
The Factoring or Invoice Discounting Providers assistance enabled the directors to facilitate the order, with mainstream funding, on a tight timescale, and with no loss of equity to the business.
More Case Studies
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