Whether you are an exporter or importer, trade finance is of great help to both parties. It has been specifically designed to help those companies who usually deal with foreign trade. There are a host of benefits associated in comparison to the more general forms of funding. Trade finance refers to the important finance and export finance. Companies who seek to trade with foreign companies, can create an account for both parties to use. You could always visit an international trade finance company such as Capital, to help with all related queries.
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You Don’t Need to Have A Credit Score
You can utilize your trade finance to get things moving even if you don’t have cash in your account, especially if there is a viable order to purchase or are making a purchase for any supplies that you might need. The best part about this is that it’s not based on your finance history, where you don’t require to hold a certain credit score or have assets as security. Through a trade finance letter, you are assured of completing a deal. Unlike other debt finances, with one trade finance agreement in place, rest assured you can easily complete any foreign trade.
Pay Specific Amounts
With a trade finance in hand, you only pay for the goods you purchase, and don’t have to spend any additional amount. Every trade finance transaction covers the specific order, both import and export.
Ability to Take Advantage of Opportunities
There is nothing worse than being open to an opportunity and not being able to take it. Through trade financing, your business is offered the breathing room needed to grow when the opportunity arises. As such, payments can easily be made to the supplier in the local currency, and repayment can be tailored to the needs of the borrower. While come call for payments either within a month or two months, some allow time of up to four months.
Clear and Straightforward Contract
Unlike traditional banks or business loans, with trade finance comes the requirement of minimal documentation. These contracts are always clear and concise, and kept as transparent, thus preventing any last-minute surprises. When you work with a reliable company, you are offered convenience and an excellent overall experience.
Deal with Experienced Company
More often than not, the process of transacting with foreign companies may be outside the scope for most companies. With a professional company like us, with extensive years of experience dealing with both local as well as international businesses, you are assured of complete guidance. That way both parties are offered the peace of mind of working with a security granted by a renowned financial institution.
Constant Availability of Funds
Funds are almost always available, so you can keep your stock or inventory without having to pay significant upfront costs. The trade financing credit can then be maintained as a working capital and not as a debt.
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