Factoring & Trade Finance
Private Shares team works with the key decision-makers at 130+ banks, funds and alternative lenders globally, assisting companies in accessing trade, receivables & project finance.
Our international team are here to help you scale up to take advantage of global trade opportunities. We have access to product specialists in all business domains.
Over the years, we have helped hundreds of clients in over 20 countries worldwide and looking forward to working with you and find the most cost effective funding solution for your trade.
Trade Finance is the financing of goods or services in a trade or transaction, from a supplier through to the end buyer. It accounts for 3% of global trade, worth some $3tn annually.
‘Trade Finance’ is an umbrella term, which includes a variety of financial instruments that can be used by an importer or exporter. These include: Purchase Order Finance, Stock Finance, Structured Commodity Finance, Invoice Finance (Discounting & Factoring), Supply Chain Finance, Working Capital Finance, Letters of Credit (LCs) and;Bonds & Guarantees The terms Import Finance and Export Finance are used interchangeably with Trade Finance.
Trade finance facilitates the growth of a business by securing funds required to purchase goods and stock. Managing cash and working capital is critical to the success of any business. Trade finance is a tool which is used to unlock capital from a company’s existing stock or receivables or add further finance facilities based on a company’s trade cycles. Other benefits of trade finance:
Short to medium-term working capital, using the underlying products or services being imported/exported as securiy/collateral. It increases the revenue potential of a company, and earlier payments may allow for higher margins.
Trade finance allows companies to request higher volumes of stock or place larger orders with suppliers, leading to economies of scale and bulk discounts.
Trade finance can also help strengthen the relationship between buyers and sellers, increasing profit margins. It allows a company to be more competitive.
Managing the supply chain is critical for any business. Trade and supply chain finance helps ease out cash constraints or liquidity gaps – for suppliers, customers, third parties, employees or providers. Earlier payments also mitigate risk for suppliers.