The trade finance option for your business to tap into
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Banks take note– there are many other ways for businesses to get funding today; the trick for businesses is often just working out where to go and what to ask for!
Small and medium sized businesses, often referred to as SME’s, make up 99% of companies in the UK – they employ over 15 million people and turnover over £1.6 trillion. Putting it simply they are the lifeblood of the UK economy – so why are they so often overlooked by banks and continue to struggle to get access to the money they need to grow?
It’s a simple story which we all know; since 2009 the big banks, impacted by the combination of the losses sustained during the credit crisis and the legacy of the various miss-selling scandals, have pulled out of many of the traditional products and markets which they used to dominate. Providing finance to SME’s has been the biggest casualty and it’s become increasingly difficult for businesses to get access to funding unless they are looking to mortgage existing property to raise cash.
Within this funding gap there has been an explosion of alternative finance providers, the people who have looked at SME’s and quickly realised there are millions of great companies run by dedicated, experienced creditworthy business men and women who need finance and are happy to consider new ways of getting it. You will have heard many terms for these new entrants – challenger banks, crowdfunding, peer to peer lenders, venture finance, short term working capital solutions, start-up loans, factoring – the list goes on, but the question that most find difficult to answer is, which one is right for my business and how can I gain access to them!
True Trade Finance is one such option. Trade Finance Partners (TFP) is an independent trade finance house based in the City of London.
Why is trade finance a viable option for your business?
- True Trade Finance, as TFP offers it, is not lending, it therefore does not require the security commitments that banks have to ask for. Instead TFP is a partner, managing the entire supply chain. TFP buys and sells goods on behalf of its clients utilising its own balance sheet.
- When used correctly trade finance fills a funding gap between paying a supplier and being paid by an end customer. As a result it can free up cash flow thus solving supply chain issues.
- For companies that do not want to bring in third parties and lose control of their business trade finance is a great solution. It is flexible as customers only pay for the facility when used, i.e. at peak times of trade. It can sit alongside existing banking arrangements and provide short term finance for one-off transactions.
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