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How Can Trade Finance Help You To Export?

Jan 17, 2017

Whether you're a manufacturer, supplier or distributor, there are many different forms of trade finance which can help to facilitate an efficient, timely delivery of the entire supply chain process.
Read on to learn more about how trade finance can help your export business to grow.



Exporting goods and services can be a rewarding but sometimes risky business. Particularly for SMEs, your capacity to accept and deliver your next contract often relies heavily on buyers settling their invoices.

Similarly, manufacturers and distributors are faced with a similar headache when it comes to funding suppliers. If cash flow has been restricted due to lengthy invoice repayment terms or unpaid balances, then this can hold inhibit your buying capability when it comes to placing your next order.

Trade finance can help to support almost every facet of the supply chain process by paying suppliers on behalf of buyers with lending secured against customer purchase orders.

Similarly, suppliers often find themselves unable to ship their next order until previous invoices have been cleared. Trade finance can advance these raised invoices to you in order to help promote a more stable, reliable cash flow for your business.



The trade finance specialists that work with Capitalise bring a wealth of experience supporting businesses trading both within the UK and around the world.

Whether you need to trade in international currencies or simply need a finance partner that understands local business practices, their invaluable knowledge can help to facilitate a smooth, hassle-free supply chain from start to finish.

Working as an intermediary between exporter and importer, your trade finance partner will play a big part in ensuring that goods are delivered and that invoices are settled in a timely fashion.



Since trade finance agreements are intrinsically tied to the overall supply chain process, repayments are made at convenient stages of completion. For example, if you're an exporter shipping finished goods to a customer, the loan will be secured against the purchase order meaning that you'll only be required to pay back the amount borrowed once this has been delivered and settled.

If you're a supplier who has received an advance of, for example, 80% on an invoice, you'll receive the remaining 20%, minus fees and interest, once your customer pays off the outstanding balance.



Trade finance is a very popular form of alternative lending which has helped thousands of businesses to grow their export revenue.

You can compare many of the UK's top providers in a matter of minutes by simply completing your Capitalise profile online. We'll take into account the purpose of your loan and type of business you have before matching you with lenders who can not only issue the funds your business needs, but have a proven track record supporting other businesses within your sector.


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