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• 19 Jun

  Are There Fewer Trade Finance Companies

  Importers often turn to trade finance (TF) as a way of paying their suppliers. The trade finance house will pay the supplier (normally once evidence of having shipped the goods is provided) and then the importer has a period of credit in which to sell the goods.

  Whilst there may have been some providers leaving the market, there are still options available for those looking to finance their supply chain, or import goods from abroad.

  APPLY FOR TRADE FINANCE

  Are There Fewer Trade Finance Companies?

  Often, TF providers will look to confirmed orders from large end users as security for the transactions, but it can also be written on the strength of the importers themselves. For example, if you had orders from supermarkets, they could well be suitable for this type of import funding - but are there fewer trade finance companies?

  We had a meeting with a colleague from one of our funding partners, who had been active in the trade finance sector through previous employers. He mentioned how few providers now service the UK trade finance segment. It is true, that there have been a few exits from this space that were TF providers.

  A couple of the other providers may have changed their appetite for TF. One is now seeking larger multi-million-pound facility deals only and the other is rumoured to have lost some of their specialist staff.

  TF Sector Developments

  However, there have been some positive moves to balance the situation. Previously, Bibby launched their Pre-Shipment Finance, to help importers get even earlier access to funding. We also reported on the launch of Berkeley Trade Finance several years ago. 

  4Syte rebranded, including a distinct new 4Syte Trade branding for their import funding services.

  So whilst there have been some that have moved away from this type of funding, there are others that are still open to funding new clients.

  By Glenn Blackman