Pay your suppliers upfront and repay once your goods have sold, with up to 100% of supplier cost funded on terms of up to 180 days. Free up cash for larger orders, better supplier prices and seasonal peaks.
No credit search and no upfront fee.
Trade finance is short-term funding that pays your suppliers for goods before you have sold them, then gives you time to sell and collect cash before you repay. A lender can fund up to 100% of the supplier cost, with repayment terms of up to 180 days on each transaction. It is used mainly by importers, wholesalers and brands buying finished goods for resale.
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With a UK or overseas supplier.
By direct payment or through a letter of credit, often allowing you to negotiate better prices for paying earlier.
To you or your customer.
And invoice your customer.
Within the agreed term of up to 180 days, often by rolling into an invoice finance facility as you invoice.
Supply chain finance, sometimes called reverse factoring, works from the buyer's side. A larger business sets up a programme that lets its suppliers be paid early by a funder, while the buyer pays on its normal terms. Pricing is based mainly on the buyer's credit strength. It suits larger buyers who want to support their supply chain and extend their own payment terms without putting pressure on suppliers.
| Funding | Up to 100% of supplier cost |
|---|---|
| Term | Up to 180 days per transaction |
| Payment routes | Direct supplier payment or letters of credit |
| Suppliers | UK and overseas |
| Structure | Revolving facility, drawn order by order |
| Pricing | Priced deal by deal |
All figures are "up to" and subject to status and lender approval.
We start with your purchase pattern, supplier list, margins and sales pipeline, plus recent accounts. We then work out whether trade finance alone fits, or whether it should sit alongside invoice finance or a wider asset based lending facility covering stock and receivables. We prepare the credit case, approach suitable lenders, compare indicative terms side by side and manage onboarding through to the first supplier payment. For e-commerce brands we may also compare revenue-based stock finance.
Up to 100% of the supplier cost, depending on your margins, trading history and the goods being bought.
Up to 180 days on each transaction, set to match the time it takes to receive, sell and get paid for the goods.
No. It can fund UK and overseas suppliers, although it is most commonly used for imports.
Trade finance is arranged by the buyer to pay its suppliers. Supply chain finance is a buyer-led programme that lets suppliers be paid early, priced on the buyer's credit.
Yes. Many businesses repay trade finance as they invoice, by drawing on an invoice finance or asset based lending facility.
No. Growth Business Finance is a commercial finance broker and debt adviser. Finance is subject to status and lender approval.
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