Trade Invoice Finance

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Trade invoice finance is there to support UK businesses who import/export around the UK or globally. Essentially it still operates as a traditional invoice finance facility would be having the ability to pay your supplier quicker and trade with more businesses. The invoice financier will pay the supplier on the business’s behalf. This allows the business to continue trading and use these funds as cash flow. Once the business raises an invoice to the customer, they receive an agreed advance on the invoice up to 85%, and then the remaining balance is received once the invoice is paid. There are a few additional fundamental added bonuses with trade finance. These are that commonly the invoicing is insured so you don’t lose out. Also, import taxes can be paid keeping it simple and straightforward.

Who uses Trade Invoice Finance?

Businesses all over the UK that import or export across the world currently and can potentially take advantage of these invoice finance facilities. Manufacturing, the food and drink industry, and the clothing industry all are ideal for cash flow support facilities such as this. Having finished goods which are insured whilst being transported by air, rail or sea is crucial for the business applying. Typically, businesses that are well established and have been trading longer than 12 months are in a great position to apply. However new start businesses who are looking for finance can still apply and speak to a broker at Pinnacle as they can still be eligible.

Success stories of Trade Finance

There are thousands of businesses across the UK that use a form of trade finance to support cash flow and grow their business. One business Pinnacle has secured funding for was a clothing business that important for seasonal clothing from China. Their turnover was £1.8 million with great ambition and drive to grow. They were constantly battling against cash flow as they needed to fulfill large quantities each time. They not only had to wait for the goods to arrive from China and pay import taxes. They then had to wait for the goods to be delivered to their warehouse in the UK. Finally, then get them out for delivery to the customer. The pain didn’t end there. Once the goods were delivered a further 45 days of credit terms until they finally got paid. The finance broker at Pinnacle could see how to boost turnover and turn this situation into a positive. They secured a trade invoice finance facility for the business allowing them to take larger shipments, improve debtor relations in China with their supplier, and trade with more businesses in the UK. Now their turnover has grown exponentially to £2.7 million in space of 12 months. Pinnacle always offers a free consultation to all UK businesses and acts as a trusted, respected finance broker.

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