Stock & Trade Finance

What is Trade Finance?

Trade finance is a funding package for UK Companies which purchase and onward sell finished goods.  It is deisgned to allow the upfront payment to your supplier for goods against a confirmed order from your customer.  This is achieved by direct payment from a funder or by the issue of a Letters of Credit.

Your supplier and/or your customer can be located in the UK or overseas.

How does Trade Finance benefit my business?

There are many ways in which Trade Finance can benefit your business.  If you are an importer, purchasing goods upfront to fulfill a large order can stretch cash flow, quite often when your business can least afford it. Trade Finance can assist by providing immediate funding against these orders by way of opening a letter of credit or settling the supplier invoice direct.  The goods are then received, sold on and the facility repaid.

If you are an exporter, we have access to specialist funders who can provide specialist export funding to many parts of the world and can include credit control and cash collection services in the Country concerned and more importantly in the local language. 

What is Stock Finance?

Stock finance provides a facility that is intristincly linked to value of your stock or inventory, whether this is in the form of raw materials,work in progress or finished goods.  These type of facilities are normally arranged as part of an Asset Based Lending facility, although it is possible to arrange a stand alone facility, depending on the goods that need to be funded.

How does Stock Finance benefit my business?

Stock in any form is an expensive commodity, which in certain industries where immediate supply is important, can number many, many product lines.  The more stock that is held, then the less free cash flow there is available to your business to fund it's cost base and such other activities such as sales and general overheads.

Stock finance facilities will release a percentage of the cash tied up in these assets that can then be utilised to fund your day to day business or to allow other advantageous business activities.

Facilities are revolving by nature so will rise and fall in line with the movements in your purchase and sales activities together with any seasonality in the your business.

For more information on the individual Trade and Stock Finance products or indeed any of our other products and services, complete the Get A Quote, Contact Form or email Alternatively simply telephone our national rate number 0845 601 5343 or contact your local Harrisons office, details of which can be found within the Contact Us section.