4 key benefits to Trade Finance

Claire Hogarth02/Sep/2014International Trade

UK Buyers can benefit from Ebury Trade Finance which provides the credit needed to fund international and domestic purchases. Financial services can get very complicated very quickly so we have broken our Trade Finance offering down into four key benefits.

1. Flexibility

Ebury Trade Finance provides a credit facility of up to £1,000,000, which allows you to pay cash upfront to any of your Suppliers, no matter where they are based in the world, and you can enjoy up to 120 days to settle the balance. The credit could significantly benefit the cash-flow of your business; this allows you to buy goods in larger quantities than you may previously have been able to afford and enjoy the increased availability of stock. The upfront payment to your Suppliers can also be made in the Supplier’s local currency which removes the currency risk and can achieve significant Supplier discounts.

2. Convenience

Once a credit line has been established, you are able to draw on it at your convenience and Ebury will make sure you have a clear understanding of the associated costs from outset. Unlike trade finance products offered by many banks, Ebury does not take ownership of your goods at any point in the process and we do not process the shipping documents. This removes the need for extensive documentary processes and allows you to trade uninterrupted. Ebury understands that the speed that you can import goods and sell them on at a profit is crucial to your business and, by using Trade Finance, you can ensure you have a competitive advantage.

Ebury Trade Finance also has no set up or maintenance costs, our only cost is the fixed fee for each transaction. It is this element that makes it a truly convenient credit facility and has led many of our customers to utilise to finance their peak seasons.

3. Security

Trade Finance also gives you the ability to offer your Suppliers an undertaking of payment from Ebury Partners Finance Ltd, a separate FCA registered company. This gives your Suppliers a security guarantee on the payment and benefits Supplier relations. It also improves your position to negotiate on their prices.

4. Transaction Flow

Once a credit line is established between your business and Ebury, you can access the facility by presenting Ebury an invoice and the relevant financing documents. Ebury will then confirm the details of the invoice with your Supplier.

When you receive the goods and accept their quality, Ebury will make the payment directly to your Supplier in the currency specified in the invoice. Repayments will then be due to Ebury after 30-120 days from the date of the payment.

This system enables you to better control your trade cycle and provides the necessary credit without interfering with your trading relationships.

Trade Finance has the ability to unlock the trade potential of UK SMEs. If you think your business could benefit from Ebury Trade Finance, apply online now.

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Written by Claire Hogarth

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