Monday, February 18, 2008

Trade finance review

We seem to be as busy arranging trade finance facilities nowadays as we are with factoring and discounting but unlike the latter where the business models seem to be very similar, the trade finance enquiries that we have been asked to look at are much more diverse.

During 2007 we arranged trade finance facilities for a variety of clothing importers, most of whom were placed with one of the factoring companies that also offered trade finance to be taken alongside their factoring facilities. A further range of importers covering such a diverse range as pushchairs, frozen fish and electronic games were introduced to a different financier who’s offering was slightly different and more suitable in these circumstances whilst we arranged multi million trade finance and LC facilities using our contacts with both a High Street Bank as well as a couple of overseas banks.

We have arranged funding for a steel manufacturer in China who was selling into Brazil, which was slightly different to the more normal deal which is importing from China into the UK

Whilst it is fairly routine now to arrange funding for purchases against firm customer order it is far more complicated to arrange for funding for stock however we do have a couple of sources for stock finance although the criteria is very strict.