Before we look at the differences between the various trade finance products available, let us look at what the term trade finance means for you.

Trade finance is finance that is offered to help traders involved in national and international trades as a guarantee for payment in order to facilitate smooth business transactions. A bank or a financial institution will issue a guarantee that the payment liable to be paid by an importer or buyer will be made by them - in case the buyer or their client fail to pay the said amount in the time as agreed with the seller. Under this agreement, the lender will recover the paid amount in installments as agreed with their client, the buyer.

Import finance is very similar to this, and a buyer will need to satisfy the seller that the value of the goods they are exporting to the buyer will be paid by a third party - which, in this case, is the bank or financial institution. The third party will then issue a letter of guarantee or bank guarantee to the buyer that the buyer can produce for the exporter or seller as a payment guarantee. Once the goods are delivered and if the buyer fails to pay the full amount to the exporter, the said exporter can always receive the payment in full from the bank by producing the letter of guarantee to the bank. Under the import finance agreement, the banks will pay the amount agreed to the seller and recover the amount later from their client or buyer according to the terms agreed in the settlement or agreement.

Davenham Trade Finance operates within the UK and offers various trade finance products to businesses involved in trading and import businesses. They offer easy and flexible terms that a client can formulate according to their capabilities. Call them for more information about trade finance on 0161 832 8484 or send an email to [email protected] explaining your requirements. Feel free to also visit their official website davenhamtradefinance.co.uk, to understand the various trade finance products they offer to customers.

About Us
Davenham Trade Finance is based in the UK, and offers trade finance products to needy customers on flexible terms.