Trade Finance Partners – At the forefront of trade
It is important when trading cross border that those in which you work with on the finance side really understand your company and know what you are trying to achieve. The underlying transactions and fundamentals are of utmost importance. This includes cash cycles, underlying product, parties involved, carriage and country. We need to understand your goals and this is when we can really work with you.
Trade Finance Global aim to work as your partners and have long-term relationships. This is throughout the growth period – from being a one man company to a large corporate where there is need to negotiate with banks and syndicate funds. Our team aim to act as your trade finance partners.
Many in the market have short term and quick fix attempts at solutions. However, in reality a holistic approach is needed when looking at a company, the aims and future growth, including projections.
There are many sources of finance in the market and there are those who promise to be the best solution, but realistically a blend is preferred and is usually the most efficient type of capital for the growth of a company.
Why is this the case?
The aim of being a trade finance partner and working with you as a long-term addition is that we will look at the finance cycle. An example of this is a trade and stock facility with an invoice line, when compared to a cash flow facility. Although the rate of a cash flow facility may sometimes look more attractive, this may not be the case. A cash flow will sit in a company and accumulate interest when possibly not being utilised. However, a stock or trade facility will be utilised only when paying a supplier. If structured correctly, then as soon as product is delivered to the end buyer, an invoice will be raised and an invoice finance line will fund against this; to pay back the trade or stock facility. This will create a blended cheaper cost of finance when contrasted to a cash flow facility.
What are the main types of finance used for purchase orders and sales?
The most typical facilities for cross border traders are:
Stock Finance
If you’re importing goods but don’t have confirmed buyers.
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Letters of Credit
Pay exporter on behalf of buyer, if the terms are met.
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Structured Commodity Finance
Import or export raw materials and commodities.
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Invoice Finance
Release cash from invoices issued to the end debtor.
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At Trade Finance Global we aim to work as a long-term partner and aim to understand the business, personnel, aims and ambition for growth. We want to work with dynamic companies that want to improve their structures, position and outlook in the market. Long-term relationships are what we hope to achieve. We believe that the specialisation in outlook allows us to cater for your needs instead of taking a one-size fits all approach to finance.