What is trade finance?
Some Debtor Finance companies offer Trade Finance as well. Often this product is used along side a factoring product. It is now becoming more common for lenders to offer this product to businesses who import and export.
How does trade finance work?
This type of finance can be ascertained and used from Freight on Board (FOB). Lenders choose to have an exit strategy by being able to see the businesses goods are pre-sold, then there is some comfort around this facility. This facility costs can incur a service fee, and a daily interest rate until goods are paid back. This will depend on risk, circumstances, and the length it takes to get paid.
Trade finance along with debtor finance
Lenders mostly offer trade finance along with debtor Finance and factoring. Businesses that use trade finance will increase their business cash flow. The need for trade finance diminishes once cash flow becomes less an issue. Some real benefits of using Trade Finance, often its secured against the debtors.
Find products suited to your industry
Trade Finance with Debtor Finance if used correctly can be a very strong financial tool. Get on board and take advantage of the low dollar.
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