Trade Finance

Trade finance is a form of finance designed specifically to support import and export transactions.

The classic dilemma is that the exporter will not want to release goods until it has been paid, but the importer won't want to pay until the goods have been received and, ideally, sold.

Trade finance solves this dilemma by using the commercial documentation that supports an import/export transaction as security, namely the bill of lading, bill of exchange and insurance documentation. The lender can take title in the goods by controlling these documents, which then allows it to advance money against them.

Trade finance is a particularly specialist area and we would be pleased to introduce you to one of our recommended providers in this area. Please talk to us for more information.