Trade Finance

Our TRADE FINANCE services are available exclusively to our clients as an additional feature of our support to their business. TRADE FINANCE is not provided in isolation.

Think “Structure” before “Finance.”  First thoughts are often directed to the need for Trade Finance. However we suggest that it is important to determine how operations are “structured” – how they will operate across different countries and jurisdictions within differing taxation and legal issues.

Trade Finance, can fund up to 100% of the overseas trade purchase, including freight costs, over a period of up to 365 days

Opportunities for International Trade are often limited by the payment demands of the supplier (seller, exporter) and the cash flow constraints of the buyer (importer).

In particular, the buyer must wait for the arrival of shipped goods and any distribution of those goods to be completed before being able to sell to its customers.

Even when using Letters of Credit or Bills of Exchange to guarantee and secure payment, the credit terms available to the buyer may not be sufficient to cover these delays to recover cash.

Valetime Group have been working with International companies for over 15 years; and we have the experience in working arrangements with banks, credit insurers and other agencies for import and export trade finance.

What is Trade Finance?

Trade finance covers many terms, including for example, Import Finance, Export Finance, Letter of Credit negotiation and discounting, Avalising or Forfaiting of Bills of Exchange; and Credit Insurance. However at it’s simplest, Trade finance provides the opportunity to “bridge the gap” between the payment requirements of the seller and the funding constraints of the buyer.

Trade Finance is a process to ease the pressure on cash-flows in International Trade.

Buying

  • Purchasing on prompt payment?
  • Working with Letters of Credit?
  • Working with Bills of Exchange?
  • Would you prefer to have credit of up to 365 days?*

Selling

  • Selling on terms requiring Letter of Credit or Bills of Exchange payable at 60, 90, 180, 270, 365 days?
  • Working with International Buyers?
  • Would you prefer to have prompt payment after shipment?

Contact us to find out how your business can benefit from Trade Finance using Letters of Credit and Bills of Exchange.

Find out about  Corporate Structures for International Trade.

Trade Finance, can fund up to 100% of the overseas trade purchase, including freight costs, over a period of up to 365 days*.

* subject to acceptance by banks, credit insurer and other agents.

How Trade Finance Works

Trade Payment – without Trade Finance

Trade Payment – without Trade Finance

Trade Payment – Using Trade Finance

Trade Payment - Using Trade Finance

Benefits of Trade Finance

Cash Flow

By using trade finance a buyer can bridge the funding gap between buying overseas and being paid by their customers. A supplier can receive prompt payment without the need to give credit or take risks.

Developing Business

Trade finance can be used as a tool to develop business – once used, trade finance can become an integral part of a business relationship. For existing customers, what worked last time can be repeated for the next order. It is also a way of attracting new customers with a proven mechanism to add value and benefits.

Document Processing

Trade finance includes responsibility for working Letters of Credit (LC) or Bills of Exchange (BofEx) with banks, credit insurers and other agencies. Specialist skills are needed and these can be provided without employing specialist staff. The involvement of International Banks provides extra security in these arrangements, which can be complex.

Contact us for more information on Trade Finance




Contact Valetime Group

Now that we have introduced you to our services, find out how we can help you or your business.

contact form | @valetimegroup | phone: +44 1204 497 900.