Trade Finance Ireland | 2023 Trade Finance Guide

2023 Guide | Trade Finance Global

Trade Finance - Ireland

Welcome to the Ireland Trade Finance and International Trade hub. Find out how our Ireland-based team can help you access trade finance to increase your imports and exports, or find the latest research, information and insights on trade finance here.

What is trade finance?

Trade Finance is the financing of goods or services in a trade or transaction, from a supplier through to the end buyer. It accounts for 3% of global trade, worth some $3tn annually. ‘Trade Finance’ is an umbrella term, which includes a variety of financial instruments that can be used by an importer or exporter.

These include:

  • Purchase Order Finance
  • Stock Finance
  • Structured Commodity Finance
  • Invoice Finance (Discounting & Factoring)
  • Supply Chain Finance
  • Letters of Credit (LCs) and;
  • Bonds & Guarantees

The terms Import Finance and Export Finance are used interchangeably with Trade Finance.

In order to address some of the common issues and misunderstandings around Trade Finance, we have put together this short guide.

How can trade finance benefit my Ireland-based business?

Trade finance facilitates the growth of a business by securing funds required to purchase goods and stock. Managing cash and working capital are critical to the success of any business. Trade finance is a tool that is used to unlock capital from a company’s existing stock or receivables or add further finance facilities based on a company’s trade cycles.

Why does this help? A trade finance facility may allow you to offer more competitive terms to both suppliers and customers, by reducing payment gaps in your trade cycle. It is beneficial for supply chain relationships and growth.

Other benefits of trade finance

  • Short to medium-term working capital, using the underlying products or services being imported/exported as security/collateral. It increases the revenue potential of a company, and earlier payments may allow for higher margins.
  • Trade finance allows companies to request higher volumes of stock or place larger orders with suppliers, leading to economies of scale and bulk discounts. 
  • Trade finance can also help strengthen the relationship between buyers and sellers, increasing profit margins. It allows a company to be more competitive.
  • Managing the supply chain is critical for any business. Trade and supply chain finance helps ease out cash constraints or liquidity gaps – for suppliers, customers, third parties, employees or providers. Earlier payments also mitigate risk for suppliers.

It is important to note that trade finance focuses more on the trade than the underlying borrower, i.e. it is not balance sheet led. Therefore, small businesses with weaker balance sheets can use trade finance to trade significantly larger volumes of goods or services and work with stronger end customers.

Due to the embedded risk mitigants that surround trade finance lending and instruments, it leads to the potential of a diversity of supplier base for trading companies. A more diverse supplier network increases competition and efficiency in markets and supply chains.

Companies can also mitigate business risks by using appropriate trade finance structures. Late payments from debtors, bad debts, excess stock and demanding creditors can have detrimental effects on a business. External financing or revolving credit facilities can ease this pressure by effectively financing trade flows.


Get started – talk to our Ireland team

If you have a trade finance enquiry, please use the contact form below.


Finance Queries:

Partnership Queries:

Find out more about partnering with us here.


Want to learn more about Trade Finance?

Look no further. We’ve put together our feature Ireland trade finance insights, research, and articles, and you can catch the latest thought leadership from the TFG, listen to podcasts and digest the latest in international trade in the region right here.

From the Editor – Trade Finance Insights

Navigating climate risks The role of CRDCs in sovereign debt management Navigating climate risks: The role of CRDCs in sovereign debt management The increasing frequency, intensity, and unpredictability of climate crises have significant implications for the sustainability of sovereign debt due to the impacts on debtors’ repayment abilities.
VIDEO | Revolutionising trade documentation: Secro’s game-changing solution for eBLs For centuries, trade documentation has been a time-intensive and resource-demanding process, involving a multitude of stakeholders and a deluge of paperwork. Central to this process is the bill of lading, the most critical document in international trade. 
digital trade documents lloyds sponsored feature Lloyds Bank completes first digital trade transaction under new UK legislation Lloyds Bank has completed what it believes to be the first transaction under the UK’s new Electronic Trade Documents Act (ETDA) which came into force today [20 September 2023]. 
Marco Polo Network trade finance goes into administration 5.2 million euro feb 2023 Marco Polo Network runs insolvent with €5.2m debts A court ruling on 22 February heard that the Marco Polo Network has debts of more than €5.2 million (£4.6 million).
TFG Weekly Trade Briefing TFG Weekly Trade Briefing, 17th May 2021 Your morning coffee briefing from TFG. Global inflation troughed last summer, and has risen markedly since. Britain, Ireland agree to work together to smooth post-Brexit trade and the US Colonial pipeline resumes operations following ransomware attack.
brexit eu uk ‘Brexited’ – What the new UK-EU agreement means Almost four years later, Brexit is complete. What does the new UK and the EU agreement now mean for trade, and what’s left to do?
Frederic Bourgeois ExCred VIDEO: CoFace – Receivables Securitisation 101 & The Role of Insurance Policies TFG hear Frederic Bourgeois , Managing Director for CoFace for UK and Ireland, about the importance of specific insurance policies for the securitisation of trade receivables. He spoke about the trends and changes in the insurance of trade receivables.
TFT TV (3) VIDEO: BREXIT… To Be Continued, Insights from Euler Hermes Head of Macroeconomic Research Trade Finance Global caught up with Head of Macroeconomic Research, Ana Boata at Euler Hermes last month at The Institute of Export & International Trade’s World Trade Summit. A very interesting macroeconomic view on how households, retail and economic growth has changed in 2019 due to trade wars, Brexit and business uncertainty.
VIDEO Keeping UK trading after Brexit – Views from the Freight Transport Association VIDEO: Keeping UK trading after Brexit – Views from the Freight Transport Association With the UK and EU yet to reach an agreement on their future trading relationship, it is vital goods vehicle operators are as prepared as possible for a No Deal Brexit. In this scenario, new border procedures and haulier responsibilities will come into effect immediately. Hauliers must ensure they fully understand the new road haulage procedures, documentation requirements and responsibilities that will arise; otherwise, they risk their operations coming to a standstill.

Videos – Trade Finance

Trade Finance Frequently Asked Questions

What types of Trade & Receivables Finance does TFG offer?

TFG assists companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.

We assist specialist companies to scale their trade volumes, by matching them with appropriate financing structures – based on geographies, products, sector and trade cycles. Contact us to find out more.

Trade Finance & Stock Finance

  • Trade Finance (Purchase Order Finance)
  • Stock Finance
  • Pre Export Finance
  • Import & Export Finance
  • Structured Commodity Finance
  • Letters of Credit
  • Bonds & Guarantees

Receivables Finance & Invoice Finance

  • Receivables Purchase
  • Invoice Finance
  • Discounting
  • Factoring
  • Supply Chain Finance

Specialist Trade & Receivables Finance

  • Borrowing Base Facilities
  • Back-To-Back LC Lines
  • Long Dated Receivables – Media, Sport
  • Revolving Credit Facilities (RCF)
What is the process for applying for trade finance?

1. Application

The initial ‘credit’ application drives the process when applying for credit.

Lenders will often ask for information on current assets or collateral that the business owns, including debt and overdrafts, assets that the company or directors own (property, equipment, invoices).

2. Evaluating the Application

The evaluation process will normally involve some kind of credit scoring process, taking into account any vulnerabilities such as the market the business is entering, probability of default and even the integrity and quality of management.

3. Negotiation

Eligible SMEs applying for trade finance can negotiate terms with lenders. An SME’s aim with a lender is to secure finance on the most favourable terms and price. Some of the terms that can be negotiated can include fees and fixed charges, as well as interest rates.

4. The Approval Process and Documentation of a Loan

Typically, the account officer who initially deals with the applicant and collects all of the documentation will do an initial credit and risk analysis. This then goes to a specific committee or the next level of credit authority for approval. If the loan is agreed (on a preliminary basis) it goes to the legal team to ensure that collateral can be secured/ protected and to mitigate any risks in the case of default.

Read our full ‘trade finance application process’ here.

Strategic Partners:

Get in touch with our Ireland trade team

Speak to our trade finance team

Quick Links

Latest Ireland feature from Trade Finance Talks

Download our free trade finance guide

Latest Ireland Trade News


Marco Polo Network runs insolvent with €5.2m debts


A court ruling on 22 February heard that the Marco Polo Network has debts of more than €5.2 million (£4.6… Read More →


Weigh anchor! UKEF supports new export fishing contract for Middlesborough boat builders


Parkol Marine Engineering has announced the launch of its new vessel, Green Isle. Upon completion, Green Isle will sail to… Read More →


TFG Weekly Trade Briefing, 17th May 2021


Your morning coffee briefing from TFG. Global inflation troughed last summer, and has risen markedly since. Britain, Ireland agree to… Read More →


UK Export Finance unlocks trade to Egypt and supports UK jobs with a £1.7bn guarantee


Support to level up opportunities in Derbyshire as Bombardier invests in manufacturing capacity to build trains for export, supporting jobs… Read More →


‘Brexited’ – What the new UK-EU agreement means


Almost four years later, Brexit is complete. What does the new UK and the EU agreement now mean for trade,… Read More →


Euler Hermes: Government extends shield to sustain UK trade


LONDON, 31 December 2020 – The UK government, the Association of British Insurers (ABI), Euler Hermes – the world’s leading… Read More →


A&O advises the lenders on New Look’s financial restructuring and recapitalization


London – Allen & Overy has advised the syndicate of revolving credit facility (RCF) lenders on the recently completed recapitalization… Read More →


UK secures vital rollover trade deal with Canada and agrees to start negotiating more advanced deal next year


The UK and Canada have locked in their existing trading relationship, worth £20 billion, and agreed to begin negotiating a… Read More →


Is the freeports bidding process too ambitious for ‘all nations’ in the UK?


The bidding process in England is opening, to establish at least seven new Freeports. The first are expected in 2021,… Read More →


First exports of UK beef to the USA in 20 years underway


UK beef to be served on US plates for first time in over 20 years, with first exports commencing from… Read More →


ING advises AIB on their first green bond issuance


Wednesday 30th September: ING is pleased to announce that it has acted as sole structuring advisor and joint bookrunner for AIB… Read More →


Government announces new Board of Trade


The Department for International Trade has announced its new advisers to the Board of Trade, comprising of senior figures from business,… Read More →


Liz Truss brings key industries closer to trade negotiations


Department for International Trade (DIT) steps up engagement with British industry and farmers as UK trade negotiations intensify Eleven new… Read More →


Euler Hermes survey – Four in five UK CFOs “unprepared” for Covid-19 sales slump


Eight in 10 chief financial officers fear their businesses are ill-prepared to handle a decrease in sales volumes as the… Read More →


Government’s post-transition border plan published today (13 July): 10 things traders need to know


The government today (13 July) published its post-transition border plans for goods moving between the GB and EU and provided guidelines for… Read More →


UK inward investment projects increase in 2019


Figures from the Department for International Trade published today (10 July), show the UK attracted 1,852 new inward investment projects… Read More →


Liz Truss launches future trade strategy for UK tech industry


The Government has announced a range of measures to help boost digital trade and establish the UK tech industry as… Read More →


Trade Credit Insurance backed by £10 billion guarantee for business-to-business transactions


Following several calls by business leaders and groups to provide state support for UK businesses, the UK Government have agreed… Read More →

Visit our Global Hubs

TFG in Translation

About the Author

Gabrielle Ann Vilda is an author at Trade Finance Global

Back to Top