Northwest Business Funding – Business Trade Finance
The term business trade finance covers a range of finance functions and can be classed as finance for the facilitations of payments in National or International arenas.In business language this is a method of using someone else’s money to pay for or facilitate a payment to a supplier in return for goods.
The purpose of business trade finance is to ease cash flows, for instance getting a large order from a customer is a good thing, however not having the trade terms or the cash to pay supplier can be bad. This is in its simplest form is how business trade finance can help a business.
The logic of trade finance is simple, you will pay a percentage to use someone else’s money and that percentage should be covered by you gross margin.
There are other ways to use trade finance but it fundamentally means the same you use someone else’s money to pay for goods.
Other Benefits of Business Trade finance
If you have a steady supply of a selling item then with extra purchasing power supplied with business trade finance, you could demand better prices for larger orders or product or stock. This would enable you to achieve higher margins on the sold item.
Other benefits seen on other media suggest soft benefits , efficiency , less risk of cash starvation in the business. These in our opinion will not be helped by trade finance. The business needs to be robust and have a clear plan to use the trade finance to improve the position. North West Business Funding can Trade Finance International and National transactions. The criteria for lending will require the business be able to present
- Audited financial statements
- Full business plans
- Financial forecasts
- Credit reports
- Details and references of the directors
- Information on assets and liabilities
If you think you need assistance understanding or getting business trade finance contact us, we will help.
What is the process for gettting business trade finance
We work with you to get the information required to complete the pre approval. With our experience we can usual let you know in the first meeting if it will work for you.
How Long does it take
The time depends on the information you have and can access, your understanding of the funding requirements and the type of funding required. in best cases funds can be in your business with 2 weeks from our first meeting.
How much can I get
The amount you require is for you to decide, what will be important is that you can set the repayments and that the level of risk for the lender is acceptable. We work with you to make sure you are prepared before we approach the lenders.
