Trade Finance Providers

 

It is often difficult to obtain the credit you need from your suppliers, particularly when importing from overseas. Trade Finance facilities are tailored to provide the cash needed by releasing valuable working capital locked up in your orders or warehouse.

  • Up to 100% funding for the purchase of the goods from your suppliers.
  • Take on orders that would otherwise not have been possible.
  • A tailored approach in the term of the facility, structure and overall cost which is designed to work with your requirements and margins.
Purchase order finance

Our experienced trade finance team work with specialist lenders within the trade finance sector. This enables us to be able to quickly structure and set up straightforward trade finance facilities, so that our clients do not have to turn down orders and any potentially lucrative relationships that may follow. Whether you are importing or exporting goods, contact a member of our trade finance team and we will be happy to talk through your requirements and provide you with assistance.

Trade Finance options:

  • Purchase Order Finance – Payments made to your suppliers against purchase orders domestically or worldwide for goods, covering up to 100% of the purchase price.
  • Letters of Credit – Payment guarantees covering up to 100% of the purchase price from suppliers, subject to satisfying delivery and other conditions.
  • Stock Loans – Release valuable working capital locked up in your warehouse up to 100% of the stock value.
  • Supply Chain Finance – Facilities to fund up to 100% of a trading company’s purchases from suppliers worldwide, structured as supplier payments or reverse factoring. Facilities start from £500k and a strong credit rating is necessary

Is a Trade Finance facility right for your business?

Trade Finance facilities aren’t appropriate for all businesses. But if the following basic criteria are met they could be the right solution for your business.

  • The business has a funding requirement of £100k or more (£500k minimum for supply chain finance).
  • The business is a new start or established trading businesses of any size and sector.
  • The business is a corporate entity registered in England and Wales
  • The business has suppliers in the UK or overseas who require payment before releasing the goods
  • The business has goods which are finished items or raw materials.
  • There is a confirmed purchase order from your debtors
  • The management team of the business are experienced with a proven track record.

Case studies

Case Study 1

purchase order finance case study

We were approached by the account of a private equity backed business and brand leader for fruit crisps. They were seeking additional cash flow for a large order from the USA, following marketing and development of their product in the country.

We were introduced to the client by their accountant after their bank requested 100% cash covered letters of credit, which were impossible for the client to finance.

Following an in-depth initial meeting with the head of our trade finance team, we were able to quickly identify possible providers. We then negotiated and ultimately secured a $2m solution.

This enabled our client to procure their product and pay the factory, with the transaction secured on credit insured payments from the US buyer.

Following the initial funding, the client is continuing to generate new orders, with Oakmead Finance now acting as their preferred broker.

Their dedicated account manager knows and understands the business, and is able to quickly secure the finance for them. This is allowing them to enjoy rapid growth, whilst being safe in the knowledge that they have the cash available to fund all new confirmed purchase orders.

 

Having a Purchase Funding facility in place is a huge benefit. We work with Oakmead Finance more as partner than a customer and the team’s expertise and knowledge of the market is undoubtedly a huge advantage for us.

Case Study 2

purchase order financing case study

We were approached by a predominantly UK based company which sold chemicals used in the manufacture of paints. They were seeking expansion into lucrative new markets in the Far East and required a $5m facility to fulfil newly generated orders.

However, the business’ existing bankers were unwilling to lend further to the business, due to their current financial performance. They were also unwilling to trade with these markets, due to the perceived risk being too high.

After an initial meeting our experienced team quickly identified the best way to structure the transaction. We then approached a select number of specialist lenders, who not only provided funding secured by a credit insurance facility but also, given our client’s inexperience with international trade, took control of the management of the supply chain.

After an initial meeting our experience team quickly identified the best way to structure the transaction and approached a select number of specialist lenders which not only provided funding secured by a credit insurance facility but also, given our Client’s inexperience with international trade, took control of the management of the supply chain.

We liaised with the lender to facilitate the purchase of the chemicals directly from the supplier in Europe and then worked with the lender to arrange delivery direct to the end debtor.

Following a successful trade, the client is continuing to expand across the Far East. We have also allocated a dedicated account manager within Oakmead Finance who understands the business and their growth strategy. This makes it quicker and easier to help fund the company’s global expansion.

 

“Oakmead Finance’s experienced trade finance team worked seamlessly with us and the finance provider to agree a mutually acceptable facility, which has allowed us the expand internationally. Having a dedicated account manager has given us the confidence that we are dealing with someone which truly understands us and our goals. They are more a trusted business partner, than a service provider.”

 

Oakmead Finance Ltd is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority.

Oakmead Finance Ltd is a company registered in England & Wales with company number 09478864. The registered office address is 33 Clarendon Way, Chislehurst, Kent, BR7 6RE

Trade Finance facilities are not regulated by the Financial Conduct Authority.

The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.