Trade finance is an essential tool to many businesses managing global trade and supply chains.
It allows businesses to unlock the funds needed to fulfil orders. Using this type of finance, they can make purchases and pay suppliers before receiving the cash from the sale.
By taking the pressure off day-to-day purchasing, trade finance – sometimes referred to as receivables finance – allows businesses to continue to purchase from suppliers and maintain valuable relationships, easing cash flow until sales are paid for.
A typical trade finance deal sees the funder pay the supplier on your behalf. This means you do not need to wait until the sale has been made before paying for your purchase, or rely on having sufficient funds in the bank.
With trade finance, the business can continue to grow even when payments for sales are still outstanding. It manages trade risk, particularly in overseas trade, and creates working capital to maintain the supply chain.
Finding the right funding for your business
The experts at RedSky have excellent contacts with all providers of trade and supply chain finance. We will work closely with you to ensure you obtain the most appropriate funding and to enable you to concentrate of growing your business and developing overseas relationships.