If you trade international and need support to help your business in managing your finances with importing or exporting goods then trade, import and export finance products could be the right solution for you. There are a variety of trade finance products available which include term loans, Letter of Credit (which are guarantees of payment by the bank), documentary collections (to take possession of goods in exchange for credit), bonds and guarantees. There are many trade, import and export providers to choose from and we have explored below what they can offer.
Companies are ranked in no particular order.
1. Bank of Scotland
- Offers import and export products in partnership with Lloyds Bank
- Short-term funding for import or export finance solutions
- Documentary collections to mitigate payment risks
- Documentary Letters of Credit
- Trade finance to strengthen short-term cash flow
- Bonds and guarantees to assist with bidding for overseas business
- Receivables purchase to unlock money in invoices
- Pre and post-shipment finance to advance payment for goods
- UKEF Short Term Schemes supports exporters
- Call them for more information
Website Bank of Scotland Trade, Import & Export Finance
Read the full Bank of Scotland review
2. Bibby Financial Services
- Offers support for importing and exporting
- Finance tailored to support international trade
- Trade finance to help pay for goods from overseas
- Letters of Credit
- Export finance to release value from invoices
- Foreign exchange service
- Funding up to £10 million on imports and no limit on exports
- Deals with 65 currencies
- Option to add invoice finance and bad debt protection
- Request a callback
Website Bibby Financial Services Trade, Import & Export Finance
Read the full Bibby Financial Services review
3. Danske Bank
- Offers a range of trade finance products
- Minimise credit risks
- Manage credit terms
- Control payment flows
- Import and export finance
- Guarantees or bonds
- Letters of Credit guarantee
- Documentary collections
- Provides trade finance specialists
- Call for more information
Website Danske Bank Trade, Import & Export Finance
4. HSBC
- Offers import and export solutions
- Assists businesses to trade securely and cost-effectively
- Guarantees
- Global payments
- Trade finance
- Buyer and seller loans
- Letters of Credit
- Foreign exchange services
- Provides expert assistance
- Call them to discuss your needs
Website HSBC Trade, Import & Export Finance
Read the full HSBC review
5. NatWest
- Offers a variety of trade finance products
- Flexible funding options tailored to your needs
- Reduce risks and provide reassurance
- Bonds and guarantees
- Letters of Credit
- Documentary collections
- Trade loans
- Loans available to businesses with a turnover above £2 million
- Also offers international foreign currency accounts
- Phone for more details or contact your Relationship Manager
Website NatWest Trade, Import & Export Finance
Read the full NatWest review
6. Peak Cashflow
- Provides trade services to existing and potential clients
- Flexible finance
- Helps by taking on some of your risks
- Pay suppliers in the UK and worldwide
- Invoice finance product
- Advance payment on unpaid invoices
- Helps to grow your business by taking on larger orders
- Can assist with maintaining stronger relationships with your suppliers
- Offers a free 45 minute consultation
- Complete their online form or call them for more information
Website Peak Cashflow Trade, Import & Export Finance
Read the full Peak Cashflow review
7. Royal Bank of Scotland
- Offers a range of trade finance solutions
- Flexible funding options that can be tailored to your needs
- Suitable for domestic and international traders
- Bonds, guarantees and standby letters
- Letters of Credit
- Documentary collections
- Trade loans
- Mitigate risks
- Provide additional protection
- Apply online if you are an existing customer or over the phone if a new customer
Website Royal Bank of Scotland Trade, Import & Export Finance
Read the full Royal Bank of Scotland review
8. Trade Finance Global
- Offers trade finance and international trade
- Provides short to medium term finance
- Purchase order finance
- Stock finance
- Structured commodity finance
- Invoice finance – both discounting and factoring
- Supply chain finance
- Letters of Credit
- Bonds and guarantees
- Apply online or call them
Website Trade Finance Global Trade, Import & Export Finance
Read the full Trade Finance Global review
9. Ulster Bank
- Offers a range of trade finance
- Improve your company’s cashflow
- Control your imports and exports
- Mitigate risks
- Provide reassurance to your trading partners
- Letters of Credit for import and export
- Documentary collections for import and export
- Bonds, guarantees and standby Letters of Credit
- Provides a Relationship Manager
- Can apply or enquire online
Website Ulster Bank Trade, Import & Export Finance
10. White Oak
- Provides trade finance solutions
- Assists with financing importing and exporting of goods
- Can fund up to 90% of the value of your goods
- Periods from 60 to 180 days
- Raise finance against your debtor book, inventory, plant and machinery and property
- Can be used for domestic and international confirmed orders
- Borrow from £5 million to £100 million
- Must have been trading for over 3 years
- Requires a turnover between £10 million and £250 million
- Apply online or request a callback
Website White Oak Trade, Import & Export Finance
Read the full White Oak review
How does trade, import and export finance work?
There are many types of trade, import and export finance that all operate in different ways to help support businesses to mitigate risk, raise finance and reassure suppliers. These include:
- Letters of Credit for import and export – helps to manage risk and instil confidence that goods have been delivered and accepted. The Letter of Credit is issued to guarantee payment to the supplier as the importer and gives the confidence to release goods as the exporter.
- Documentary collections for import and export – these help you to mitigate against risk in your supply chain cost-effectively. The bank acts as an intermediary releasing documents that allow your customers to take delivery of the goods (exporting) or for you to take possession of goods (importing) on credit terms with a Bill of Exchange to confirm payment at a later date.
- Bonds, guarantees and standby Letters of Credit – these are guarantees or bonds that are provided by the bank to guarantee payment. This helps instil confidence for the seller that you will pay for the goods and can assist with bidding for overseas business.
- Receivables purchase/export finance/invoice finance – are all different terms that refer to releasing money that is tied up in unpaid invoices up to 90%. This allows you to advance payments to increase your cash flow from international and domestic invoices.
- Pre and post-shipment finance – is short term finance used to improve cash flow which allows you to retain control of goods until they are paid for, or payment is accepted.
- Finance based lending against assets such as stock/inventory, plant and machinery and property finance – can be used for domestic and international orders and can be combined with invoice finance.
- Trade loans – are tailored loans that are designed to provide loans against specific contract/s and allow you to bridge the gap between paying suppliers and being paid by the customer.
How much can I borrow?
The amount of money you can borrow is not clear as most lenders do not state how much they offer through their trade finance products. Due to the range of products on offer the type of lending and how much they will provide will vary. Those offering invoice finance or asset-based finance will be restricted by the amount of credit they can offer such as up to 90% of the value is typically available and how much your invoices/assets are worth will be factored in.
How much will trade, import and export finance cost?
There is no information available about how much trade, import and export finance will cost. Arrangement fees and set up costs may also apply on top of product fees and charges.
How long can I borrow money for?
Most trade, import and export finance products are designed to be short to medium term but there are no exact lengths described in the products outlined by the providers. There are also many different products available that will all have different term lengths.
How to apply for trade, import and export finance?
How you apply for trade, import and export finance varies depending on the lender. Many lenders ask customers to contact them by phone to discuss their needs as trade, import and export finance can be complex and is best discussed to ensure the right products are selected. Some providers do offer online applications or online enquiry forms which will be followed up by their team over the phone.