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Import/Export Finance

Don't let finance slow your international growth

Trade Finance-1

Import Finance

This type of finance is used to facilitate the import or export of goods that your business provides to your clients. Import finance is the funding in goods coming in to the UK whist export finance is funding goods leaving the UK.

When importing goods from overseas there are a number of challenges, least of all how do you fund it. Import finance is a working capital solution that will help to bridge the gap between the credit terms offered by the overseas supplier and the time it takes from you received the goods, process them and provide to your clients. These transactions usually happen frequently throughout a trading period therefore a revolving credit facility tends to work best. This means that you can draw against the same facility multiple times with the funds becoming available again once they have been repaid. 

Types of import finance are:

  • Letters of Credit (documentary credits)
  • Import Loans
  • Overdrafts
  • Lender buys goods on your behalf
  • Reclaim VAT on purchases – If VAT registered

The best solution will be determined by several factors, the strength of your business, what the supplier will accept, 

the goods you are importing, the time you need the funding.

Export Finance

As with trading in the UK, many clients have come to expect some sort of credit terms for their purchases. The same is true of overseas businesses. Export finance allows you to offer credit terms to your clients whilst having little or no impact on your cashflow.

Types of Export Finance are:

  • Acceptance of Letter of Credit (documentary credits)
  • Invoice financing – funding an overseas ledger in multiple currencies

Import / Export Finance FAQs

How long can I borrow for?

The term of the finance is determined by the transaction. We take the time to understand each transaction and identify where in the process there is a borrowing requirement. This serves two purposes, first it allows us to identify the best solutions and secondly, we can keep borrowing to a minimum to keep the costs down. Typically, these types of transactions will be between 90 and 180 days.

Will I need to give security?

In most instances you will need to provide some security. This is dependent on the strength of your business, experience, the goods you are importing/exporting, the supplier etc. The goods act as the main security with personal guarantees needed in most cases and tangible security being needed less often. Check out our blog for more info on the types security for lending.

How much can I borrow?

The amount of loan required is determined by the transaction. Borrowing amounts start at £50k with no upper limit for the right proposal. If this is a new venture the amount you can borrow will be limited however for more experienced operators, the limits are considerably higher.

Why work with us?

We work with all lenders ranging from high street bank to more specialist lenders meaning we can facilitate most transactions. As with all lending proposals, the presentation and understanding of the risks is key. We have years of experience in working with international businesses and helping them secure the right type of finance to grow their businesses. We’ll help identify the best solution and pair you with the most appropriate lender. As you become more experienced you may find that you have outgrown your lender, that’s why we hold periodic reviews of your facility to make sure the lender is till fit for purpose and is the most competitive provider for you. 

Simplifying access to finance

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