If you regularly trade overseas, collecting payments and keeping your cash flowing can be a long, often laborious process. Most companies that trade globally need a buffer from time to time – if you find that’s the case for you, contract finance could be the short-term salve that helps your business expand.
Short-term finance secured against export contracts
Contract finance is a short-term loan, secured against a specific export contract or purchase order. If you don’t have assets to secure against but you have contracts to fulfil, it is a straightforward way of releasing some working capital. Rather than securing a facility against your whole sales ledger, we can find a lender who will look at the value of an individual contract and base a finance solution on what it’s worth and how much it will cost to fulfil it.
Contract finance can be used as a standalone service or as part of a trade finance package with other services such as Letters of credit, bank guarantees or import and export finance. The lender will advance you the money that you need, based on the value of the specific contract and when the contract is complete and you are paid by your supplier, you repay the loan along with interest and any fees.
Cut down on the complications of global trading
At Access Commercial Finance , we like to get to know your business, and your trading habits, so that we can make sure the contract finance we offer is truly useful, and your contracts are valued at the right rate. As contract finance is secured against your order, it can be a good source of funding even if you don’t have years and years of accounts or an absolutely perfect credit history.
As well as providing a financial stopgap, contract finance can minimize some of the complications of trading overseas –funding can be paid in almost any currency, for example, which makes it much easier to manage your cash flow when you are running operations globally.
Contract finance is an ideal solution to boost your finance in between taking on an order and getting paid. It can also minimise some of the complications of global trading. Some of the solutions we have found for our clients include:
- Contract finance for clothes importers
- Contract finance for character merchandising.