Trade Finance

Supplier financing for UK and overseas traders

  • Funding facility for supplier payments
  • Support for importers and exporters
  • Fast, stress-free funding in 24 hours
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Proud to support Britain's Businesses
What is Trade Finance How it works Do I qualify Fees & Charges

What is trade finance?

SME trade finance enables UK businesses to receive financing from lenders, banks and financial institutions helping you bridge the cash-flow gap between purchasing goods both domestically and internationally and getting paid by your customers.

Whether your trade deals are domestic UK or international, the exporter requires the importer to pay for the goods before they are shipped. This can leave businesses in a risky situation financially. With our trade finance product, the financial risk is eliminated - the product acts on your behalf and provides the funding required to import your goods.

Purchase goods globally and domestically

Purchase goods globally and domestically

Get the goods you need without damaging your cash flow. Trade finance caters for many international countries and can pay suppliers in over 60 currencies.

Same day supplier payments

Fast supplier payments

As soon as the goods are shipped, your suppliers will be paid on the same day.

Benefit from better supplier terms

Benefit from better supplier terms

By receiving your payments effectively early, you are then able to negotiate better contract terms and pricing with overseas suppliers.

VAT, duty & freight costs covered

VAT, duty & freight costs covered

Payments for transport logistics, import VAT and import duty is paid for on your behalf.

Receive up to 95% of the value of your sales invoices

Bolt-on invoice finance

In addition to trade finance, you can also add invoice finance so that cash can be released from your customer invoices.

Optional Foreign Exchange services

Optional foreign exchange service

If you make payments in other currencies, a foreign exchange service can be integrated to help pay for overseas goods.

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Some of the funders we work with

Bibby Financial Services
Close Brothers Invoice Finance
Advantedge Commercial Finance
GapCap
Market Finance
Ultimate Finance

How does trade finance work?

Trade finance simply lets your business purchase domestic or overseas goods without hurting your cash flow. It helps bridge the gap between importing these goods from suppliers and getting paid by your customers.

1
Place an order with your supplier

When you place an order from your supplier, the finance provider will guarantee payment to the supplier with a letter of credit or a supplier undertaking.

Trade Finance Step 1 - Place order with your supplier
Trade Finance Step 2 - Your goods are shipped

2
Your goods are shipped

Once the finance provider receives the confirmation documentation that the goods have been shipped from the supplier, the payment will be sent to them on the same day, and in their preferred currency.

3
Sell your goods and repay the finance

The goods arrive at your location. Once the goods have been sold, you simply repay the finance provider back. Alternatively, you can use your invoice finance facility to pay this without waiting to get paid from your customers.

Trade Finance Step 3 - Sell your goods and repay the finance

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Do I qualify for trade finance?

To be eligible, your business must be based in the UK and trade in goods, services or commodities with other businesses domestically, or overseas. This facility will suit most industry sectors including wholesale, manufacturing and retail.

To find out if you’re eligible for trade finance, all we need from you are a few details to help us process a quote. We’ll need your funding requirements, a bit about your business, including turnover and the status of your business, and your contact details. Those few details are all that stands in the way of receiving your trade finance quote.

We can help businesses if they meet the following criteria:

You are a Limited company or LLP

You have an annual turnover of £100,000 or more

Your business is based in the UK or Ireland

You buy and sell goods for resale

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What is the cost of trade finance?

The costs associated with Trade Finance differ for domestic UK goods and overseas goods, and the supplier and the buyer. There are many factors that can affect the cost including, bad debt protection, foreign exchange services and also if you’d like to run an invoice finance facility alongside it.

As with any business finance product, you should always ensure you understand the terms of the agreement thoroughly, along with any additional charges. Getting a quote from SME Invoice Finance is the quickest and easiest way to weigh up whether this is a product your business can afford

Get your free, tailored, no-obligation quote today

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SME trade financing

Why you should consider trade finance for your business

Without trade finance, exporters could worry about the importer defaulting on their payments for the goods being shipped. And on the other side, the importer knows that the goods will arrive in time to satisfy their business needs as there are no delays and gaps from payment.

Trade finance can help your business import products from all over the world and in larger quantities than previously ordered. Because of the credit facility enabling you to pay upfront and only pay the money back once your goods are sold - this means your business can enjoy the increased availability of stock.

You don’t even have to wait until your stock has sold to pay your finance back, this is where our other funding solution, invoice finance can help you out.

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We help support UK businesses grow

Proud to support Britain's Businesses

Since 2014, we've helped many businesses, large and small, get access to the working capital they need through trade finance.

Trade finance and purchase order financing for UK businesses

Sometimes, suppliers don’t give credit terms, which in turn, can leave you out of pocket while the goods are being transported. This is where trade finance, also known as purchase order financing, can help.

Our trade finance panel can fund the payment to your supplier directly on your behalf in the agreed currency. This has many benefits including

  • Fast payments for your cash flow
  • And, the provider will act for you in the country’s native tongue

Trade finance is a highly-valuable service for businesses trading internationally. Some goods are shipped from a supplier in one country to a customer in another country - bypassing the UK. We can take care of these financial logistics, easing the pressure on your business.

At SME Invoice Finance, we are helping more and more UK businesses unlock their trade vision by releasing the cash flow burden associated with tied up credit terms. By offering trade finance from a dedicated funding panel, we are powering UK businesses to trade more efficiently.

  • Quick setup and easy process
  • Improves your cash flow
  • Straightforward costs
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SME trade finance team