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Indigo Financial Solutions Ltd: Invoice Finance, Capital Equipment Finance, Unsecured Commercial Finance

Trade Finance

Import/ Export Finance, also known as Trade Finance, allows UK businesses to secure funds when importing or exporting.  This finance helps businesses keep cash flow stable, make the most of new opportunities, or invest in other areas of business growth, whilst waiting for funds from the sale of imported or exported goods to be realised .

Import Finance

In the majority of cases, goods are imported to be sold on to a third party.  These can be finished goods, or parts to make up finished goods to be sold.  The importer won’t receive any money for the goods until they’re delivered in to the third party customer.

Frequently, however, money is needed up front, to pay for raw materials, production and shipping, and this is where Import Finance comes into its own.  The creditworthiness of the third party customer is key in this situation, as a Finance House will have to be confident that they have the funds to pay for the items.  Assuming a successful financial assessment, the Finance House will issue a letter of credit to the importer.  In turn, the importer can use this letter of credit to raise funds.  The borrowing will repaid directly by the third party customer when they take delivery of the imported goods (as per the terms of the letter of credit).

Export Finance

There are various ways for a business to protect itself against a shortfall of working capital when exporting goods.  Issuing pro forma invoices or working with a specialist factoring company are two options. 

Another option is Export Finance which allows the exporter to borrow funds against a letter of credit.  When the invoice is issued to the business buying the exported goods, that business provides a “letter of credit” from its bank.  This promises that funds will be available to pay the invoice, and states the payment terms.  This letter of credit can then be used by the exporter to raise funds from a trade finance house.

Trade Finance

Import / Export Finance allows businesses to trade without tying up vital working capital.  It is a flexible form of funding that keeps cash flow stable, allowing businesses to be competitive and to grow.

At Indigo Financial Solutions we have access to a variety of lenders, so we can quickly find you the right Import / Export Finance facility for your business.  Our relationships with different lenders, and our proven track record, mean that we can find the facility that will best help you meet your business objectives.  Indigo is here to help your business succeed in the long term, not just to find a short term solution to tide you over.

Indigo Financial Solutions Ltd: Invoice Finance, Capital Equipment Finance, Unsecured Commercial Finance

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Call us today on 0845 226 3078 to talk about Indigo Financial Solutions sourcing you the right invoice finance solution for your business.