Opt for Purchase Finance to Promote the Growth of your Trading Business

Purchase finance is a short-term financial option used for commercial purposes for a buyer dealing in finished and perishable items where the are required to make an upfront payment for the goods ordered. Businesses hate depleting cash reserves, and they also do not like to refuse orders because they don’t have the funds to finance it. The purchase finance instrument allows dealers to accept larger orders as the short term loan meets their immediate demand. The purchase order loan can also be stopped if order volumes are not achieved and the rest is within the limit of the regular cash flow as the loan does not demand a long-term commitment from the buyer.

This product is specially designed for businesses wanting to fulfill bigger orders as they would not have access to huge working capital or cash flow.  This instrument is more suitable for startup businesses and small businesses attempting to achieve business growth who lack the finances to back up their plans. This include manufacturers, distributors, importer ad exporters, wholesalers and resellers.

Trade finance similarly helps the buyer/importer to order goods from an overseas supplier who would like to have some kind of payment guarantee against the goods being dispatched. The trade finance products such as the letter of credit, bank guarantee and collection and discounting of bills are extended by private trade financing companies who also offer flexible terms to the clients who want to avail themselves of their services. Having a trade finance account is a great help as a buyer can fearlessly order shipment with the assurance of the bank guaranteeing the payment, and the exporter will also feel the same way when dispatching the shipment. 

We at Davenham Trade Finance, offer trade, purchase and import finance products to importers/buyers dealing with local and overseas clients and help to facilitate the trade transaction in the most convenient manner. If you are one of the players dealing with the purchase of various commodities from local and overseas suppliers, you can avail yourself of our services that are highly flexible and promote the growth of your import business. Call us on 0161 832 8484 to choose one of our trade finance products and you can also send an email to vincetovey@davenham.co.uk.  

Utilise Trade Finance UK to Facilitate a Smooth Foreign Trade

Every business needs finance and without finance businesses cannot run as they are essentially trading in order to earn revenue and profit. The fact that finance is so essential in trading is where the element of trust comes into play. This is especially the case with international trades where a third party guarantor such as a recognised bank or financial institution will stand guarantee for payment for the purchase made by the buyer. Banks provide purchase finance to various models, and all are designed to facilitate the smooth trading between two parties hailing either from local or international destinations.   

If you are an importer operating from within the UK then you will need the guarantee of a bank which will finance your purchases by way of letters of credit or a bank guarantee. In international trading where the involved parties do not know each other, the trade finance bank will form the bridge on which they will travel and meet. If you are an importer you may be worried about the timely arrival of the goods you have ordered from a foreign seller, hence you may decide to make the payment in advance fearing for non-delivery of goods. The same could also be the case for the exporter, who fearing nonpayment will not deliver the shipment in full. This creates a catch-22 situation which can only be salvaged by a third party who will stand guarantee for the payment to the seller which in turn will ensure the full delivery of the goods to the buyer.

Many trade finance UK companies have been offering highly efficient trade financing services to importers in the country such as mentioned above. Depending on the credit standing and reputation of your purchase trade, you can utilise these facilities with the financial institutions and banks operating in the country and carry out your international trade. 

If you want convenient and fast acting trade finance in the UK, call Davenham Trade Finance on 0161 832 8484 as we have been providing purchase finance to various traders operating locally and globally for the past several years.  Davenham Trade Finance is a trade finance company which offers trade finance solutions that are the most suitable for traders. Please visit our official website at www.davenhamtradefinance.co.uk to find out more about our services.

Enjoy Better And Reliable Trade Financing From Davenham Trade Finance

Is the Purchase Finance System right for your Business?

If you have found yourself experiencing difficulties with cash flow and finance within your business, then it can be stressful and finding answers can be hard. It could be that you no longer have the investment you need or all capital is swallowed up running the business but either way, it is essential to have the running capital for your business to function effectively. Whether you’re a small business or a multinational corporation you have to keep on top of your income and outgoings and you have to balance the books and therefore, some kind of trade finance can become necessary. Purchase finance is one of many options for different types of business.

Purchase finance is designed to allow you to pay either suppliers in the UK or overseas for finished and non-perishable goods, in the instance that they have a demonstrable exit route. It is quite similar to the import finance system and it is a great choice in situations when your suppliers aren’t able to offer you enough credit and when there is a funding gap within your business to cover the costs of the goods. Many businesses need financial support in this situation as it doesn’t always make sense to put all earnings made from sales right back into purchasing goods as other areas of the need business funding too. Various financial agencies provide purchase finance and as long as you meet the criteria they set out you can reply. The capital you borrow is based on set rates of interest as a rule and in some instances, you may be able to cut the interest if an early repayment is agreed.

Long term financial help is another thing altogether and it is something you should discuss with your chosen trade finance supplier. With the right documentation and evidence you can afford the finance, then it should be a straightforward process with your chosen finance supplier and often you will also be able to enjoy free financial help from your chosen supplier or guidance as to where to find it. Everything your finance company offers should be clear and transparent and you should be made aware of any fees or service charges.

Once you have made your application and have been approved for your trade finance product, you should then be able to finalise a date for the receipt of the capital and be able to use it effectively within your business.

What Is Trade Finance and How It Helps Your Trading Business in UK

Trading offers a great business platform on which one can build a fortune in a surprisingly short time. To run a trading business successfully, however, you will need the assistance of banks and financial institutions that are specialized in trade finance. But what is trade finance? Trade finance is when banks and financial institutions offer various financial instruments such as bank guarantee, letters of credit, and bill collections that are specially designed for trade use and these are called trade finance instruments or products.

One has to be careful about the terms that the banks or financial institutions you choose for the purpose offer you because some may offer terms that may be way out of your capacity to pay in case of a failure. You should also look at the standard terms that they offer as well because some other bank or institution could be offering terms that are easier for you to manage. You will probably require trade finance at some point in your exporting businesses life, so it will be better for you to settle on a bank that you think is reasonable sooner rather than later. The best thing about trade finance is that there is someone who is standing by you to finance your imports and who is ready to pay if you fail to pay the exporter the assured value of the goods that you have imported.

Most trading around the world takes place with the help of financial institutions because no trader wants to trust the other party regarding payment or delivery. The financial institutions, by acting as intermediaries, offer great service to both the buyer and seller and absolve any doubts that remain in the minds either party. Trade finance products, such as letters of credit, bank guarantees or payment against bills are great financial products for trade, and an importer can avail themselves of any of these products to complete trade deals with an exporter. The exporter backed by the bank guarantee will ensure full delivery of the goods to the importer and in time.

If you want trade finance in the UK you can call Davenham Trade Finance on 0161 832 8484, and we will respond immediately to your query. You can also visit our website www.davenhamtradefinance.co.uk to find out more about our trade financing offers.