London Trade Finance
London is seen as one of the global capitals of finance. This is set alongside places such as Hong Kong, New York and Singapore. This is spread across a variety of sectors; including those such as commodities, retail and vehicles. Thus, the most sophisticated finance houses and understanding of the most mature elements of the market are in these locations. This is along with the most advanced players on the borrower side. This means that the products used in these areas will differ to plain vanilla lending structures used elsewhere and financiers will have the ability to look at transactions in differing ways; where possible.
Trade finance can be applied to many financing types. However, at its most basic form it is the facilitation of trade globally or in country. Fundamentally, there is usually a purchase order element and an invoice side; which pays back the facility used to acquire goods. However, in many circumstances companies use more sophisticated products such as uncommitted trade finance facilities, letters of credit or standby letters of credit.
Trade Finance is available on many products in London, from vehicle finance to technical equipment. Our dedicated finance specialists will work with you to find a funding arrangement and issue a Letter of Credit or payment structure which suits your specific needs.
We see many different types of lending companies in London including:
- Sharia compliant finance houses
- Private trade finance companies
- Invoice finance products
- Private equity funds
Trade finance can mean many different things including:
- Receivables finance
- Letters of Credit
- Standby Letters of Credit
- Cash flow lending
- Revolving credit facilities
- Uncommitted trade finance lines
- Tripartite trade finance agreements
- Borrowing base facilities
- Reverse factoring
- Stock finance
All facilities are intended to increase trade where there is a buyer and seller confirmed. However, in some industries this is not always absolute and so variations of this model will be true. This may be seen in stock finance or a revolving credit facility where there are not 100% purchase orders, due to a specific industry or trade.