What we offer
We simply arrange Trade & Invoice Finance in a more flexible user friendly way.
Whether you are an Importer, Exporter (perhaps both) or only have UK domestic sales, Growth-Finance will find the best funding solution for you.
- How much additional funding do you need? Do you require a “quick fix” or longer-term requirement? This determines whether you just need to fund maybe one invoice, selected invoices, a series of invoices or your whole sales ledger ongoing.
- Invoice Finance can fund typically 80% -100% of the gross value of your invoice(s) sometimes the same day and usually within 48 hours of the invoice being issued.
- Depending on individual circumstances your invoices can be Credit Insured for you (usually 90% of invoice value) to protect against customer failure or non-payment. This is optional as it does not suit every industry sector and if you already have a Credit Insurance Policy that’s fine too.
- You get you initial cash advance – let’s say 85% and then the rest (15%) is yours when the customer settles the invoice – that is less the funders fee.
- Depending on your company’s structure and circumstances the funder (usually called a Factor or Discounter) may require your customer to pay the invoice proceeds into your account with them – a simple time served process – in other arrangements the customer pays you and you repay the funder.
- Funding can be arranged for your Customers in the UK and many overseas Export Markets.
- Any arrangement will be clearly documented including all costs involved.
- Trade Finance provides you, the buyer, with the cash to pay your supplier(s) where they are unable to offer you credit terms.
- Your suppliers can be overseas or in the UK.
- When the goods are ready to be shipped the funder will pay your supplier for you, so the goods can be delivered to you (or sometimes direct to your end customer).
- Depending on the structure of the arrangement the Funder is repaid either directly by the end buyer (just as in an Invoice Finance agreement) or by you, the client, usually on agreed future date.
- Sometimes suppliers require deposits. It is possible to find a funder who can help with this although, most prefer that you, the client, pays the deposit from your own cash. For goods coming into the UK a Trade Finance facility will often include the provision of paying the VAT, Freight & Duty for you.
- Trade Finance arrangements can be for new-start businesses who need to fund that very first order, growing companies or as a second line of finance for long-established companies.
- Trade Finance is suitable for a wide range of finished goods and sometimes for major or key components needed for a manufacturing process.
- Increasingly in recent years Trade Finance (sometimes called Supply Chain Finance or Purchase Order Finance) has been conducted on open account terms, however Growth-Finance can also help you if you need to work with Letters of Credit (LC’s) – either to pay a supplier or where your customer is paying you by LC. Some Export markets are still heavily reliant on LC’s Trade.