The right type of funding
Over 99% of UK businesses are small or medium enterprises accounting for nearly half of the UKs private sector employment and contributing to over £3.5 billion turnover. Yet most SMEs struggle to get access to the right finance so that they can grow, reach out to other markets, and have access to working capital. James Sinclair, marketing director of Trade Finance Global said: “We see hundreds of businesses each year who are running financially healthy businesses, but cannot access the right types of funding so that they can fulfil larger orders or grow their businesses.”
The Trade Finance Guide
“One of the biggest misconceptions of business finance is that SMEs feel that they are not eligible to any type of finance if rejected from their bank. This is absolutely not the case. We have launched the SME Trade Finance Guide to educate and inform business owners on the different ways that they can access finance, and how trade finance works.”
The Trade Finance Guide aims to help SMEs understand how they can access finance for trading services and/ or goods (also known as trade finance). It allows a basis on which a company can look at equity finance, invoice discounting, or how to overcome the risks of importing or exporting goods overseas; the guide also offers a primer for SMEs looking to access export finance.
The instruments of trade finance
Letters of Credit, although one of the most commonly used instruments in trade finance, are one of the least understood terms in business finance. It is important for business owners to understand why the seller (exporter) and the buyer (importer) have different risk appetites during a trade deal. Other instruments such as Documentary Collections and Cash Advances can also be used to finance the purchasing or exporting of goods and services. We hope the guide is both helpful and thought provoking!