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.
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.
- 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 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?
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 – Using Trade Finance
Benefits of Trade Finance
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.
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.
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