Question 1

What is trade finance?

Accepted Answer

Trade finance is a funding solution that bridges the gap between when you need to pay your overseas supplier and when your customer pays you. A lender pays your supplier on your behalf, and you repay the lender when your customer settles their invoice.

Question 2

How does a letter of credit work?

Accepted Answer

A letter of credit is a guarantee from a bank to your supplier that they will be paid once they provide proof of shipment. It gives the supplier confidence to ship the goods, and gives you time to receive and sell them before paying. Your trade finance broker will arrange the letter of credit as part of the facility.

Question 3

How long does a trade finance facility take to arrange?

Accepted Answer

Initial facilities typically take 2 to 4 weeks to set up, depending on the complexity of your supply chain and the lender's requirements. Once established, individual drawdowns against the facility can happen within days.

Question 4

What countries are covered?

Accepted Answer

Most trade finance lenders cover all major manufacturing and export countries including China, India, Turkey, Vietnam, Bangladesh, and EU member states. Some restrictions may apply to sanctioned countries. Your broker will confirm coverage for your specific supply route.

Question 5

What do I need to qualify?

Accepted Answer

You'll typically need an established trading history with your supplier, confirmed purchase orders or contracts from your UK customers, and a UK limited company structure. Minimum facility sizes usually start at £25,000.

Question 6

Can I use trade finance alongside invoice finance?

Accepted Answer

Yes, the two products work well together. Trade finance funds your supplier, invoice finance releases cash from the sales invoices you raise to your UK customers. Combining the two gives you cover from the moment you place a supplier order to the moment your customer pays. We can arrange both as part of a co-ordinated facility.

Question 7

What documents do I need to apply?

Accepted Answer

Lenders typically want recent filed accounts or management accounts, three to six months of business bank statements, your last VAT return, a list of your main suppliers and customers, and confirmed purchase orders or contracts for the trade you want to fund. Your broker will guide you through exactly what each lender needs.

Question 8

Can I finance a single shipment or do I need a full facility?

Accepted Answer

Both options are available. Single-shipment trade finance covers one specific transaction and is useful for first-time importers or one-off larger orders. Revolving facilities give you ongoing cover for regular imports without re-applying each time. Larger facilities with established panels typically offer better rates per transaction.

Fund your imports
before you've sold the goods

What Trade Finance Solves

How It Works

You place an order

We fund the supplier

Goods arrive in the UK

Customer pays, facility repaid

Key Benefits

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Fund your importsbefore you've sold the goods