Published on 01.October.2014 – According to Aldermore Bank’s trade finance team many UK importers struggle to pay for large purchases.
Aldermore’s new trade finance product provides working capital to pay suppliers at the time the goods are shipped, providing funding for the period until payment is received from customers.
Trade Finance is the second SME funding solution to be developed by Aldermore’s new Specialist Finance team.
Andrew Dixon, Director of Specialist Finance at Aldermore, said:
“Traditionally the market for Trade Finance has been an area with more demand than supply so we’re looking to address this and help the UK businesses access the funds they need to grow. Many of these companies are seasonal businesses which require a high level of working capital at certain times of the year. This often results in businesses experiencing severe cash flow pressure in their peak seasons; we want to help them through these periods by providing the finance they need to achieve their full potential.”
How Does It Work?
Using your Trade Finance facility is straightforward:
- Place your order with your supplier
- We pay your supplier against shipping documentation or open a letter of credit for up to 100% of the purchase price of the goods
- The goods are shipped and ultimately delivered to your customers
- You repay the transaction depending on your facility: Within 90 days from the transaction date OR Through an invoice finance facility with Aldermore based on the value of the invoices raised to your customers for the goods.
Key benefits
- Funding for your trade cycle – easing the cash flow burden between placing your orders with suppliers and being paid by your customers
- Peace of mind – our expert team handles your supplier payments for the goods, so you are able to focus on growing your business
- Business on your terms – access to funding, as and when you need it, to buy more goods and increase your sales
- Transparent approach – we’ll keep you informed every step of the way, clearly explaining how the facility will work and what it will cost
- Convenience – our online client portal gives you complete visibility of your transactions
