What are the benefits of trade finance? 

At PMD, we believe that businesses should never miss an opportunity to grow, which is why we champion trade finance. Nothing is worse than seeing an opportunity and not being able to take it. Waiting until you’ve got enough cash upfront to start trading overseas can slow down your business growth. However, trade finance gives your business the breathing room it needs to grow when the opportunity presents itself.  

Here, we’ll talk about what exactly trade finance is, and all the ways that it can benefit your business.   

What is trade finance? 

Trade financing provides the credit needed to fund international trade. Trade finance is a great funding solution for any business who trades internationally, or who wants to trade internationally.  

If your business trades with other businesses both internationally and domestically, trade finance could help you buy stock or ship products more quickly and with less risk. Trade finance also opens up opportunities for growth. If you identify a growing market for your product abroad, but you don’t have the funds to fill orders there, a trade finance agreement can facilitate this. Trade finance can also help you bring down costs by allowing you to use cheaper suppliers from overseas. For example, if you find a cheaper supplier in Asia but the shipping costs are too expensive, trade finance will allow you to start buying the goods right away.  

What are the benefits of trade finance? 

  1. Flexible

As mentioned previously, trade finance gives you the flexibility to take advantage of opportunities when they arise. Trade finance is business funding that allows you to seize opportunities that will help your business to grow, without having to wait until you have the cash to do it. 

Furthermore, payments can be made to the supplier in their local currency, and repayment can be tailored to your needs, making trade finance the ideal flexible funding solution. 

  1. Fast access to funds

With trade finance, funds are available almost immediately, which means you can improve your transaction flow and start to see business growth quickly. 

  1. Convenient

Unlike a traditional bank or business loan, trade financing requires very little documentation

  1. Secure

If you’re only just starting to trade overseas, then the prospect might feel quite daunting. However, by working with an experienced trade finance specialist such as PMD, you can be safe in the knowledge that trade finance is a secure method of funding.  

PMD has years of experience connecting domestic and international businesses, and will be able to give you all the guidance and security that you need.  

Trade Finance: How PMD can help 

Trading internationally can be risky business, with further distance for goods to travel, longer credit terms to contend with and negotiations with customers and suppliers in often unfamiliar markets. 

 Our team at PMD are experts in trade finance options, and can provide you with specialist financial support and guidance to help make the process as straightforward as possible and keep cash flowing. 

We have years of experience in securing the most suitable trade finance facilities for importers and exporters, and are able to identify the most suitable facility and lender for your business, based on your individual needs.  

If you’re considering trade finance for your business, get in touch today to see how PMD can help.  

You might like...

Government backed loans to end

July 22, 2020
PMD is working every day to support SMEs across the UK to secure finance options for their businesses and it is important for us to stress that companies need to act now before it is too late

Year end

March 31, 2017
Today is the last day of our financial year and I just wanted to take this opportunity to thank our clients, suppliers, funders and professional referrers for their fantastic support this year.