Trade Finance for Manufacturing and Wholesale Businesses:Go
Trade finance is a vital funding mechanism that aids manufacturing and wholesale businesses in managing cash flow for importing and exporting goods. It provides upfront payment to suppliers while allowing extended terms for buyers, reducing liquidity pressures and facilitating uninterrupted operations. Key benefits include improved operational cash flow and enhanced trade risk management.
- Quick and easy application process
- Loan disbursed within 24 hours
- No additional charges for early repayment
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What are the benefits of Trade Finance for Manufacturing and Wholesale Businesses?
Key advantages of trade finance include enhanced cash flow, the ability to extend customer credit, and increased purchasing power from suppliers. With borrowing capacities ranging from £30,000 to £5 million and competitive rates from 2% to 12% APR, it supports diverse financial needs. Decision times range from 24 hours to 4 weeks, ensuring timely access to funds.
What are the different types of Trade Finance for Manufacturing and Wholesale Businesses?
Export Finance
Export finance provides UK businesses with financing options ranging from £50,000 to £5 million. Eligibility criteria include a minimum of 6 months' trading history. Terms extend up to 24 months with interest rates between 3% and 10% APR.
Import Finance
Import finance offers solutions for UK-registered companies engaged in importing. It provides facilities from £30,000 to £3 million. Eligible businesses must show at least 12 months of trading history and established supplier relationships.
Invoice Finance
Invoice finance is ideal for UK SMEs with B2B operations. Companies can receive up to 90% of invoice value quickly. Eligibility requires a minimum turnover of £100,000 and creditworthy buyers.
What is Trade Finance for Manufacturing and Wholesale Businesses?
Application Process
To apply for trade finance, businesses must submit financial statements and trade documents. The process involves compliance checks and risk assessments, with approvals taking from 24 hours to 4 weeks depending on lenders and finance type.
Regulatory Requirements
Trade finance products are regulated by the FCA, requiring compliance with anti-money laundering laws. Businesses must adhere to the Sanctions and Anti-Money Laundering Act, ensuring due diligence processes are thoroughly conducted.
Borrowing Capacity & Rates
The borrowing capacity for trade finance ranges from £30,000 to £5 million, influenced by turnover and sector risk. Interest rates typically range between 2% and 12% APR, based on credit risk and transaction volume.
