Benefits of Trade Finance

Making the most of trade finance facilities

A trade finance or working capital facility can alleviate cash flow related problems by providing funding for:

  • Rapid growth which has consumed all available cash
  • Additional inventory or raw material purchases where price increases have materially exceeded inflationary rises
  • Increasing product range
  • Freeing up general banking facilities blocked by Letters of Credit   
  • Seasonal or cyclical cash flow fluctuations which are not catered for by general banking facilities ยท         
  • Opportunistic purchases of parcels of inventory from time to time
  • Taking advantage of early settlement discounts from suppliers
  • Improved pricing for bulk orders
  • Obtaining better shipping rates by consolidating orders
  • Dispensing with the need to offer settlement discounts which erode gross margins
  • Avoiding the need to change commercial banking relationships to obtain higher facilities
  • Additional layer of funding over and above normal banking lines which provides added flexibility 
  • Obtaining access to experienced individuals to provide an independent view and opinion of the business on an ongoing basis