Take the order you cannot currently afford to fulfil.
When a supplier wants paying before shipping and your customer pays sixty days after delivery, the gap is the problem. Trade finance funds it.
Someone pays the supplier so the goods can move
What this meansFunding that covers the gap between paying a supplier and getting paid by your customer. The lender pays the supplier, the goods ship, and you settle once the stock has sold or the invoice is paid. covers the cycle from order to payment. The lender pays your supplier — often against a What this meansA bank’s written promise to pay your supplier once agreed conditions are met — usually proof the goods have shipped. It lets a supplier who does not know you ship anyway. — the goods ship, you sell them, and the facility is repaid from the proceeds or rolled into What this meansReleasing cash tied up in unpaid invoices. A lender advances most of the invoice value now and settles up when your customer pays. when you invoice.
It is the difference between turning down a large order and taking it. For importers, it also removes the awkward conversation where a new overseas supplier wants payment upfront from a customer they have never met.
Who it works for
Importers, wholesalers, distributors and manufacturers — anyone paying for goods well before being paid for them.
Typically a good fit when
- You import or buy stock in bulk before selling it on
- Suppliers want payment upfront, or on shipping
- You have confirmed orders or a reliable sales history for the stock
- The gap between paying and being paid is 30 days or more
- A large order has arrived that your working capital will not stretch to
What it costs, and what it is worth
Pricing is usually a percentage of the transaction value per month, plus arrangement and documentation fees. It looks expensive against a term loan, and it is — but the right comparison is against the margin on an order you would otherwise turn down.
The other honest comparison is against paying suppliers early from your own cash and then having nothing left for wages. That is a common and quietly expensive mistake.
Questions we are asked most
Do I need to be importing to use it?
No. Domestic suppliers who want payment before dispatch create exactly the same gap, and trade facilities cover UK-to-UK purchases as readily as imports.
What security do lenders take?
The goods themselves usually form the security, alongside a charge over the company and typically a What this meansA promise that you will repay the borrowing personally if the business cannot. It puts your own money — and sometimes your home — at risk, so it should never be signed without understanding it fully. from directors. Because the funding is tied to a specific transaction, lenders can be more comfortable than with a general loan.
Can it work alongside invoice finance?
Yes, and it often should. Trade finance funds the stock; invoice finance funds the invoice once you have sold it. Together they cover the whole cycle, and lenders that offer both will usually price the pair better than two separate providers.
Have an order you cannot currently fund?
Tell us the size of it and the payment terms at both ends, and we will tell you what is possible.
Or email info@nemekfinance.co.uk · Call 07483 159369
No obligation, no credit check to talk, and a straight answer if finance is not the right move.