Receive funding in just a few business days after providing the required information - allowing you to take on more business.
Also known as purchase order finance or supplier finance, trade finance means our selected lenders will fund your supplier upfront based on confirmed orders. Trade finance allows you to deliver on orders that are outside your normal capacity to fund. Payment is fast, just a few business days after providing the required information, which can allow you to take on more business. Capitalise can help you find and compare lenders who specialise in trade finance. With access to over 100 institutional lenders, we make it easy for you to find the most suitable one for your business.
Trade finance is a popular and proven method of allowing SMEs to increase their business and trade confidently. Capitalise partners with selected and experienced trade finance lenders to help you maximise your trading abilities. Advantage of working with Capitalise include:
A frequent situation for many SME's, brands and importers is that they need help with fulfilling customer orders, that they as a business cannot fund. Working with a trade finance provider can help to pay for the goods, which is typically based on an order. The lender either raisers a letter of credit for you or pays a deposit on your behalf to supplier(s). They can also take care of things like documentation, insurance and collecting money from your customer.
Capitalise uses a little funding magic to help match the most appropriate trade finance partners to your business. Enter a few business details and we'll match your criteria with lenders from our network. From our approved shortlist, you select the lender that is right for your business. You can even invite your accountant or adviser to contribute to your application. We'll keep you updated on the progress of your application along the way.
The primary benefit is that it allows you to deliver on orders that are outside your normal capacity to fund. Payment is fast, just a few business days after providing the required information, which can allow you to take on more business. And since the deal is transactional, you'll just need to show a confirmed purchase order from a well-rated retailer or a history of sales instead of extensive financial information about your company.
Trade finance can cost 5-10% of your margin, so you'll need a gross margin of at least 20% for it to make sense to use. However, there are several lenders who specialise in this form of funding and offer competitive rates, which can make it surprisingly cost effective.
Be sure to get the right lender. Going to your local bank or some random lending institution can result in significant delays, unfavourable terms and, ultimately, rejection. Using a lender who specialises in trade finance can make the process incredibly fast, simple and rewarding. You'll also need to demonstrate that you're an established business by showing current orders or historical web-based sales of the past 12 months or more. And since the lender needs to manage their risk, you'll need to sign a personal guarantee.