Trade Finance

What is trade finance?

Trade finance is a funding solution which helps businesses pay their suppliers for goods and services.

Can I get trade finance?

Yes, you can get trade finance for your business. This facilities available are tailored to specific business requirements, if you’d like to find out more our team are happy to help.

Who is trade finance suitable for?

Trade finance is ideal for importers, exporters, wholesalers, and manufacturers who need to pay suppliers before receiving customer payments.

How does trade finance work?

Once you place an order, the finance provider will arrange payment. You then repay the provider once your goods are sold or your customer pays.

Can trade finance be used for domestic trade?

Yes, trade finance can be used for domestic trade! Wile it’s often associated with international trade, it’s also useful for UK-based transactions where upfront supplier payments are needed.

What are the benefits of trade finance?

The benefits of trade finance include protecting cashflow, enabling larger orders, improving supplier relationships, supporting business growth, and covering VAT, duty and freight costs.

Do I need to provide security or collateral for trade finance?

No, you do not always need to provide security or collateral for trade finance. Some trade finance solutions are unsecured, but often they may require corporate security, additional guarantees or to be backed by invoices or purchase orders.

How quickly can I access funds for trade finance?

Funds for trade finance can often be released within 24-48 hours once a facility has been approved.

Can I combine trade finance with invoice finance?

Yes, you can combine trade finance with invoice finance. This is a common occurrence as the combination allows you to fund the full trade cycle, from purchasing stock to getting paid by your customers.

What documents are needed to apply for trade finance?

For trade finance, you typically need a few documents to apply. These include; purchase orders or supplier invoices, business financials, trading history and shipping or customs documents (for international trade).

Can I use trade finance for seasonal demand?

Absolutely, trade finance can be used to meet seasonal demand. It’s a great tool for managing cashflow during busy periods or when fulfilling large, one-off orders.

Can I speak to someone before applying for trade finance?

Yes! PMD’s team is happy to chat through your needs and tailor a solution that meets the demands of your business.