SME importers need finance that integrates credit and currency

Claire Hogarth27/Jun/2014International Trade

Despite growth in the economy and greater credit availability for personal and mortgage loans, there has been negative growth in lending to UK businesses. The Bank of England’s Trends in Lending April 2014 report revealed a twelve-month growth rate of -2.1% in lending for all currencies. At a time when businesses need foreign currency and the credit to secure growth, small and medium businesses clearly need to look for alternatives.

At Ebury, we’re very familiar with this pain as many of our FX customers find it hard to find suitable credit for their international trade. For example, one UK musical instrument importer came to us to help boost their purchasing power with a £100,000 credit line. Combined with our currency services, this increase in working capital helped them to grow their business. This is the basis of Ebury’s Trade Finance product, one that specifically meets the needs of UK businesses who find themselves caught in this problematic situation: the market is there to grow, but lending and currency challenges are preventing their expansion.

Integrating currency trading with a credit offering creates a product that is perfect for importers. Trade Finance allows importers to access up to £1,000,000 for up to 120 days, which provides enough time for payment to the supplier, shipment to the UK and selling on the product to the end user. This works alongside Ebury’s Currency Services which allow the payment to be made in almost any currency the supplier requires. This can leverage better deals and maintains the healthy buyer-supplier relationship that the UK importer will have worked hard to build.

The opportunities for larger companies to access bank funding, as well as alternatives in the capital markets, are still there: it is the small and mid-sized companies that can most benefit from an agile, swift approach to credit and currency.

Apply now for Ebury Trade Finance

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Written by Claire Hogarth

Marketing Executive at Ebury. English Literature graduate from the University of York and a motivated professional.