Trade Finance

Trade Finance facilities are used for funding trade flows. Usually import or export, but also for domestic trade. 

 

These specialist facilities are used to reduce or mitigate the various risks involved in a trade transaction.

The competing demands of a seller requiring payment for their goods or services, and a buyer wanting to ensure he is paying the correct price for the quality and quantity of goods, can both be met with a well-structured trade finance facility.

Types of Trade Finance Products

Bonds & Guarantees

 

Bonds and Guarantees are designed to give a buyer more confidence that a seller will fulfil their contractual obligations. 

They enable a buyer to claim a penalty payment from a third party if obligations are not met. 

Common forms of bond include Tender Bonds, Performance Bonds and Advance Payment Guarantees.

Letters of Credit

 

Letters of credit (or documentary credits as they are also known) are issued by a buyer's bank to a sellers bank. They provide a guarantee of payment if the seller can provide evidence that goods have shipped in accordance with the buyers' requirements. 

They provide assurance to the seller that they can go ahead and manufacture their product confident that they will be paid upon delivery of the goods.

Trade loans 

 

Short term loans, that can be used for

pre or post-shipment finance.

Typically for a period of 2-3 months (no more than a year), this kind of loan is provided to bridge a funding gap between paying a supplier and getting paid by the customer. 

 

Trade collections

 

Trade Collections, Documentary Collections or "cash against documents" is another way for an exporter to retain control until the importer has paid. 

Shipping documents are submitted through the banking system to the banks who hold them on behalf of the exporter until payment is made.

How we can help

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Head Office

Regus Castlemead

Lower Castle Street

Bristol, BS1 3AG

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Blaise Commercial Finance is a credit broker, not a lender. Blaise Commercial Finance Limited is a company registered in England and Wales (Company Number: 10799314) and trades under the name of Blaise Commercial Finance. Registered Address: Regus Castlemead, Lower Castle Street, Bristol, BS1 3AG. Blaise Commercial Finance Ltd is authorised and regulated by the Financial Conduct Authority (FRN: 813070). Blaise Commercial Finance Ltd ©. All Rights Reserved