If you run a business that buys and sells goods then having access to the cash you need is paramount.This is especially true when growing and developing a business, with new business deals and entering new markets known for presenting periodic cashflow gaps.
This is why more than 70% of trade companies utilise the advantages of trade finance; a finance option that can support your entire trade cycle.
Trade finance covers various financial solutions that bridge the gap between paying suppliers and receiving payments from customers, used commonly by companies to facilitate international trade and large commerce projects. Instead of having to find significant funds to get an order off the ground, trade finance can lend you with the cash until you get it from the customer. It is as simple as that.
If you choose to only work with the same suppliers and customers, it is likely that your business will plateau, fail to innovate or stay relevant in its market. But, with working with new customers being a financial risk, businesses struggle to see away to grow.
With the help of trade finance, businesses can borrow the cash up front to take on new projects, not eating into their float or putting their business’ cashflow in jeopardy. Whether you are seeking funds for one international deal or would benefit from cash to get a number of local orders out the door, trade finance may well be the answer.
In our experience it is the most ambitious, disruptive businesses with clear growth plans that are utilising the lifeline of trade finance.
As mentioned, trade finance provides a cash advance on a trade deal, allowing companies to buy, receive and sell goods before payment is made to them from the end customer. The amount of money that can be lent will be based on the pre-orders you have, previous sale history and contracts signed.
Suppliers can be paid on the same day goods are shipped and funding is available until you receive the end-customer payment. This in turn makes the whole process run smoothly.
What’s more, having a strong financial foundation makes both fulfilling orders and forging new relationships with potential suppliers and customers a lot easier.
Perfecting international trade deals is the ambition of most companies, with high-volume international trade being where the real money is. If you are looking to secure your first overseas deal or have been presented with a lucrative opportunity then trade finance can help you significantly during this chapter. Providing you with the upfront capital to recruit staff, purchase materials whilst not comprising your precious cashflow, trade finance is beneficial on many different levels.
To discuss trade finance lenders, prices and terms, please contact the Lime Advisory team today. With an extensive list of lenders on our panel, we will be sure to find the right package for you and your business.
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