What are the benefits of Trade Finance

What are the benefits of Trade Finance?

The benefits of Trade Finance solutions include:

  • Access to finance for funding a business’ trade cycle, which incorporate its stock/debtor/creditor terms
  • The ability to offer earlier settlement for purchases, to secure favourable terms or offer extended payment terms to buyers, if required
  • Access to multi-currency sources of funding with flexible tenor, competitive interest rates (i.e. usually up to 180 days) to match cash flow needs
  • The ability to free or unlock the funds tied up in debtor receivables
  • Securing payment with a bank’s undertaking eg. Letter of Credit, Bank guarantee or avalisation of Bill of Exchange
  • Access the benefits of a ’natural hedge’ in situation where sales/purchases are made in the same currency