Asset Based Finance

Companies have a number of ways to smooth out their cash issues when they are dealing with finished goods.  These include accounts receivable financing; invoice factoring, purchase order funding or asset based lending. Perhaps we can help you co-ordinate between domestic asset-based finance and global trade finance opportunities.

Accounts receivable (A/R) finance allows you to get immediate cash from your invoices to credit-worthy customers.  You increase your turnover and profits, and your funder manages the credit issues, removing a further headache from your business, and sometimes, an early warning of customer credit problems.

Trade Finance – An Overview

How trade finance instruments facilitate international trade.

If you need to raise working capital, funding for a hard won contract, use stock as collateral or if you deal with customers or suppliers abroad here are five types of Trade Finance we can arrange which will let you to free up extra monies and manage your cash flow more easily, all these solutions will pay out in as little as 48 hours.

1. Letters of Credit: Letters of Credit are used mainly in the import and export of products or services from abroad. Essentially, they guarantee the exporter of a product or service bought abroad that they will be paid and the importer that they will receive the goods. Usually the letter will specify a time frame for payment and delivery which both parties will have agreed. The main advantage of a letter of credit is that it provides security to both exporter and importer. To find out more visit our Letters of Credit page.
2. Forfaiting: When you are selling goods or services abroad, forfaiting allows you to receive payment at once in situations where this would not normally be the case. However, more importantly, whether you are selling or buying, forfaiting allows you to fix currency exchange and interest rates on transactions made with companies abroad. Knowing the full cost of the payments to be made, in advance, gives both sellers and buyers better control of cash flow and powerful protection from outside factors beyond their sphere of influence.
3. Trade and Transaction Finance: Another form of finance used, principally, for the import of goods and services from abroad, more often than not, from Asia. If the goods have been sold to quality UK customers the whole transaction can be financed with the lender stepping into the middle. The client becomes the supplier to the lender and the lender becomes the supplier to the end purchaser.
4. Import Finance: Import finance allows you up to 3 months credit, generating working capital. Typically the cash is freed through a letter of credit, however there are other funding methods available depending on circumstances.