What is Trade Finance? | Business Expert
eye
2 min read
Advertising Disclosure

Business Expert is an independent comparison site dedicated to helping business owners make informed financial decisions. Some partners featured on our website may compensate us for promoting their products or services, and we may also receive payment if you follow certain links on our site. This compensation helps keep the Business Expert site free for all users and supports our operational costs.

While the order, sequence, or placement of some products and services may be influenced in certain cases by these commercial arrangements, these do not affect our impartial evaluations of the products or services we review on our site. Our assessments are based on factors such as fees, customer service, and product features.

When we refer to a product as the ‘best’ this reflects our assessment according to specific criteria. These evaluations are intended solely for educational purposes and should not be considered financial advice or a recommendation. We encourage you to assess your specific needs and explore multiple options before making any financial decisions.

Free No-Obligation Invoice Finance Quote

  • Fast Funding! Quick Access to Cash-Flow
  • Up to 100% of Invoice Value
  • Free Quote – No Obligation
  • We Do Not Sell Your Data
  • Simple, Fast, Funded!

Step 1 of 2

Trade finance is the collective term for a wide range of finance tools available, including cash, credit, investments and other assets, that can be used to facilitate trade. In its simplest form, an exporter will require an importer to prepay for goods to be shipped. In return, the importer will ask the exporter for proof that the goods have been shipped.

This process will usually begin with a letter of credit being sent by the importer’s bank to the exporter’s bank promising payment once certain shipping documents have been seen. The exporter’s bank will then loan the money to the exporter based on the contract that has been agreed.   

Trade Finance

Could invoice finance bridge your trade finance gap?

If you are a UK based exporter, Business Expert allows you to compare invoice finance providers to raise finance against foreign debtors. As soon as an invoice has been raised for the export deal, you send a copy of the invoice to an invoice finance provider. They will release up to 90 percent of the value of the invoice immediately, providing you with the capital for the shipment to be made.

Compare invoice finance providers today to find the best deal. Average cost is just 2-3 percent per invoice and the capital is released in as little as 24 hours of the invoice being sent.

Business Expert’s Newsletter

By clicking “Subscribe”, You accept our Terms & Conditions and Privacy Policy