Trade Finance
What is it?
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Trade finance is the universal term used for financing both imports and exports.
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It's usually in reference to cross border trade, however, it may also be used for domestic trade.
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Cash flow issues can arise between paying your suppliers and getting paid by customers. Trade Finance helps bridge that gap.
Who uses it?
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Any business that imports, exports, or manufactures goods can benefit from trade & export finance,
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Higher margin businesses are most suitable for trade finance due to the cost but this is not the only use case.
Costs & Benefits
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If you have an order you're looking to fulfil but have a cash flow shortfall, trade finance could be the ideal solution
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The price of trade finance varies but typically can be between 1.25 and 3% per month.