Trade Finance

Who is it Suitable for?

Trade finance is available for the importers of finished goods into the UK. A wide range of goods can be funded with the general exception of perishable and toxic goods. It will invariably, but not always, be linked to the factoring of invoices or an invoice discounting facility.

This type of funding is usually made available to organisations interested in raising company finance on the strength of confirmed orders or proven run rates on past sales. It is also available to businesses who have sourced products but need help in raising company finance to make the transaction happen.

The Process

The transaction commences when a company secures a sales order from a credit worthy customer and places an overseas purchase order. The financier will assess the credit quality of both the ultimate customer and the supplier. If the transaction is approved, a letter of credit is issued to secure the shipment of goods.

The funding line effectively stays open until the goods are sold. At that point the raising of a sales invoice enables the financier to advance funds through the factoring of invoices or invoice discounting facility, to satisfy the trade finance liability.

As a guide the financier would always look to secure a debenture over a company's assets and invariably take a limited, guarantee from its directors.

How can MCR Help?

To find out how MCR Finance Brokers could assist your business in raising company finance through trade finance and factoring invoices, call our team for a no-obligation chat on: 0871 873 2939.