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TRADE FINANCING:
EVERYTHING YOU NEED TO KNOW

TRADE FINANCING: EVERYTHING YOU NEED TO KNOW

Trade finance solutions can provide a variety of benefits to companies like securing funding for projects, unlocking working capital in the supply chain, improving liquidity and the bottom line.  With the help of trade finance, businesses can grow and expand into new markets with confidence, unhindered by global trade volatility or economic uncertainty. Not sure where to start? Here’s everything you should know to get started with trade financing: 

What Is Trade Finance?

Trade finance is a form of financing that allows businesses to access funds against the value of their accounts receivable. This type of financing gives businesses the ability to accelerate cash flow, allowing them to purchase inventory and materials more quickly than they would have been able to using traditional banking methods. It also reduces the risk associated with late payments, as the lender takes on the risk of payment. Trade  finance can be used by companies of any size, from small startups to large corporations. By leveraging this kind of financing, businesses can improve their working capital position and become more competitive in their respective marketplace.

5 Common Myths About Trade Financing

Despite the numerous benefits that trade financing has to offer, there are still many misconceptions out there about it. From thinking it's too expensive to being difficult to use, these myths prevent some businesses from reaping the benefits of this powerful tool. Trade finance offers a range of potential advantages for companies across all industries. Below we’ve debunked 5 common myths about trade financing:

1. Non-Bank Solutions Use Exorbitant Interest Rates

While there are some non-bank financing solutions that do carry higher rates than traditional banks, this isn’t always the case. Many providers are able to offer competitive rates and services tailored to your business needs. 

2. Banks Offer The Best Terms

Banks may not always be able to provide the best terms when it comes to financing solutions, since they generally have more stringent requirements than non-bank alternatives.

3. You Need High Credit Scores To Secure Financing

Although having good credit scores is advantageous when applying for finance, there are other factors that lenders consider in addition to credit scores that can help secure funding, such as cash flow or assets held as collateral.

4. Trade Financing Is Difficult To Understand and Access 

Applying for trade finance services doesn't have to be difficult and time consuming and with the right partner you can have access to quick and easy financing with an efficient process from start to finish.

5. All Trade Financing Options Are The Same 

When it comes to trade financing, no two companies are alike – each one has its own unique set of features and benefits that may or may not work for your particular situation. Be sure to do your research and compare offers from different providers so you can find the best match for your needs.

What Are The Benefits Of Trade Financing?

Trade finance provides an efficient solution that allows businesses to unlock new opportunities while managing costs more effectively. This can be invaluable in today's competitive and fast-paced business environment. Here are 4 benefits to trade financing:

  • Revolving Credit - Access a revolving line of credit that is available for reuse as you make payments

  • Working Capital - Unlock working capital within the supply chain and improve cash flow

  • Growth Funding - Support your business with a supply chain finance solution to fund growth initiatives

  • Supplier Relationships - Improve supplier relations and manage risk by worrying less about payment terms

How Do I Get Started With Trade Financing?

While it might seem daunting, getting started with trade financing doesn't have to be difficult. Here are a few steps you can take to get started:

  • Determine what your goals are

  • Contact TradeRiver UK to discuss what financing services best suit your business needs and goals

  • Access funding

What Does TradeRiver UK Offer?

TradeRiver UK is a leading provider of trade finance services. We offer comprehensive solutions tailored to each business. TradeRiver UK offers three financing solutions for our clients. 

  1. Trade Finance Program - Trade facility based on credit strength of the buyer and the seller's end buyer

  2. Seller First Program - Trade facility based on the credit strength of the end buyer

  3. Buyer Program - Trade facility based on the credit strength of buyer

Our STEPS Platform

Using our award-winning STEPS (Secure Transaction Execution Platform) Platform, companies registering with TradeRiver UK gain access to a one-stop, paperless purchasing system that removes complexity from the supply chain and provides much needed working capital, enabling them to transact with the confidence of a cash buyer –– all via our secure online platform.

Using the STEPS platform, Buyers and Sellers transact smarter by automating trade finance and working capital management and leveraging end-to-end supply chain finance solutions.

At TradeRiver UK, we accelerate client growth by bridging the revenue cycle. Our client tailored approach provides our customers with end-to-end supply chain finance solutions using our innovative trade finance platform.

With the help of our experienced team and cutting-edge technology, businesses can improve cash flow and reduce risk while keeping their supply chain moving and their business growing. If you have any questions or would like to get started with determining the right service for your business, contact us today at info@traderiverfinance.com. We can’t wait to hear from you!

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