Grow your business and free up cash flow using our trade finance facilities. We offer a range of trade finance funding lines to small and medium-size companies to support your physical commodity transactions. All our trade finance facilities are structured, but often individually tailored to suit our clients’ requirements. We consider the below types of transactions:
Our loans range between R500k and R7 million per deal.
We offer flexible payments and terms to suit your business’s cash flow. We can offer interest-only loans, partial capital payments or alternatively offer a residual at the end of the loan period. Chat with us and we will put something together which suits your business and its cash flow.
Secured finance products are regulated by the Financial Conduct Authority (FCA) and covered by the Financial Ombudsman Service, providing greater peace of mind to you the borrower.
You are a commodity trader with a credible business.
Trade cycles do not last longer than 90 days.
You have a trading track history of at least 12 months.
The product being funded is tangible and complete for the end-buyer.
You have a high margin trade cycle (minimum of 15%).
Typically, we will intercede and manage all incoming and outgoing payments related to the trade. In some instances, when this is not possible, we will use a third party ‘paymaster’ to manage the payments on both the traders and the funders behalf.
Our rates are typically based on a profit share scenario; to calculate this we will consider the profit margin, trade turnaround time and overall risk. Alternatively, we will consider offering a monthly fixed rate of between 3-5%. Trade affordability is key for us when calculating our rates and this is done on a trade-by-trade basis.
Yes, typically we would prefer to focus on margins of at least 15%
This depends on the type of facility best suited to the trade. For a typical trade finance transaction, we will typically take the commodity itself as security. On top of this we may also take a letter of credit, a secure purchase order as well as personal guarantees. We may also consider taking unencumbered assets as additional security. We will work creatively to structure the best solution for both the trader and the funder.
Ideally, we need at least 12 months of trading history. We do always try to be creative, and if you do have less than 12 months trade history please do get in touch and we can assess the viability. Often, in these instances, we will require additional security.
We focus on funding tangible, market ready products. We will not work with highly perishable goods (unless there is additional security). We can structure deals for the following types of transactions; pre-export trade finance, supply chain finance, import trade finance and purchase order finance.
In trade finance, we would fund the first ‘trial’ trade cycle in the range of R1-5m. Upon completing the first trade cycle we will consider scaling up accordingly.