Trade & import finance
Trade & Import Finance
£50k–£10M. 30–180 day facilities. Rates from 4.50%.
Fund the gap between paying suppliers and getting paid by customers. Import loans, letters of credit, purchase order finance, stock finance, and supply chain finance — across UK trade banks and specialist trade lenders.
What is Trade Finance?
Trade finance is short-term, transaction-linked lending built for businesses that buy and sell across a delayed payment cycle. Suppliers want to be paid upfront (or on 30-day terms). Customers want to pay on 60–90-day terms. The cash gap in between is what trade finance funds.
Five core products cover most scenarios. Import loans advance cash to pay overseas suppliers. Letters of credit guarantee the supplier payment without advancing cash. Purchase order finance pays against confirmed customer POs. Stock finance unlocks cash tied up in inventory. Supply chain finance (or reverse factoring) lets customers extend terms to suppliers while the supplier gets paid early.
Facilities typically run £50,000 to £10M with terms of 30–180 days matched to the trade cycle. Rates start around 4.50% on established facilities, reflecting the transaction-level security — the goods, the PO, or the bank guarantee — that underpins the lending.
Why Use Us for Trade Finance
Rates from 4.50%
Trade finance pricing is transaction-linked and typically much sharper than unsecured working capital. We benchmark banks and specialist trade lenders.
Import loan or LC
We advise on the right structure — cash advance vs bank guarantee — based on your supplier's requirements and your cash-flow preference.
Specialist trade lenders
Beyond the big banks, a deep bench of specialist trade funders will support smaller importers and unusual supply chains — we know who sees what.
Facilities that scale
Start with a single-transaction facility, scale to a revolving trade line as turnover grows. We structure for where you're going, not just where you are.
Trade Scenarios We Fund
Why Use a Broker for Trade Finance?
Trade finance is the most specialist corner of UK business lending. The right facility depends on trade route, counterparty, currency, and documentation — generalist lenders often decline deals that specialists approve cheaply.
Going direct to a single lender
- — High-street bank may decline non-standard trades
- — Single-bank limits restrict deal size
- — No visibility on specialist trade lenders
- — Structure often pushed into a generic overdraft
Using The Finance Brokers
- — Banks + specialist trade lenders compared
- — Structure matched to trade route and counterparty
- — Multi-currency and hedging options surfaced
- — Facility built to scale with turnover
How It Works
Share the trade
Tell us the route — supplier, customer, values, currency, payment terms — and the cash-flow gap you need to cover. We scope the right structure.
We shop the panel
We run the facility past trade banks and specialist trade lenders in parallel. Rate, fee, facility type, and trade-limit ceiling compared.
Facility live
First drawdown typically 5–10 working days. Subsequent trades draw down same-day once the facility is in place — funds to supplier, LC to bank, or advance to you.
Frequently Asked Questions
What is trade finance?
Trade finance is short-term lending built around the working-capital gap in a trading cycle — the period between paying a supplier and being paid by the customer. It includes import loans, letters of credit, purchase order finance, stock finance, and supply chain finance. Terms are typically 30–180 days, matched to the trade cycle.
What's the difference between a trade loan and a letter of credit?
A trade loan puts cash into your account so you can pay a supplier directly on your own terms. A letter of credit (LC) is a guarantee from your bank to the supplier's bank that payment will be made when specific shipping documents are presented — it doesn't advance cash to you, but it unlocks credit terms with suppliers who won't ship on trust alone.
How does purchase order finance work?
Purchase order finance pays your supplier against a confirmed customer purchase order. The lender advances against the PO, funds the supplier, and is repaid when your customer pays the invoice. It's particularly useful for large one-off orders that would exceed your normal working capital — common in wholesale, FMCG, and industrial supply.
How much can I borrow on trade finance?
UK trade finance facilities typically start at £50,000 and scale to £10M+ on established facilities. The size depends on trade volume, trading history, the quality of your customers and suppliers, and in the case of LCs the bank's general trade limit for your business.
Do I need to be an importer to use trade finance?
No. Trade finance is equally used by exporters (to fulfil large orders before receiving customer payment), UK-to-UK wholesalers (to bridge supplier-to-customer payment gaps), and domestic manufacturers buying raw materials against confirmed orders. The trigger is any gap between paying upstream and being paid downstream.
How quickly can a trade finance facility be arranged?
A new trade loan or PO finance facility typically takes 5–10 working days from application to first drawdown. Established facilities then draw down rapidly — often same-day — against each subsequent trade. Letters of credit take a similar setup window but issue quickly once the bank line is in place.
Related Guides
How to Get an Unsecured Business Loan in the UK
Step-by-step guide to applying for an unsecured business loan in the UK — what lenders look for, what documents you need, and how to maximise your chances of approval.
Secured vs Unsecured Business Loans: Which Is Right for You?
A clear comparison of secured and unsecured business loans in the UK — how they differ on cost, speed, loan size and risk, and how to choose between them.
What Is an Unsecured Business Loan? A UK Guide
Plain-English guide to unsecured business loans in the UK — how they work, what they cost, who qualifies and when to use one.
Trade cycle squeezing cash flow?
Share the trade route and the gap. We'll benchmark import loans, LCs, and PO finance across the UK trade panel and bring back the right structure.