Trade finance is a facility which specialist lenders offer – it enables firms to buy products and ease working capital. Generally, a trade financier will fund all of the cost of the product, including charges (e.g. VAT charges).

Trade finance offers upsides over more traditional working capital finance such as loans which require security, and invoice discounting. Trade finance provides up-front funding quickly without affecting existing bank relationships, without affecting the balance sheet.

If you’re a Glasgow based firm who might want to pay an exporter in advance, a trade finance expert provides a Letter of Credit which warranties settlement upon transportation of the items to the exporter from a standard bank in his or her home country. Trade finance enables businesses and organisations quick access to trade finance with hardly any financial risk because the security is assured through the trade finance supplier which secures finance against the goods themselves.

Find out more about trade finance here