Trade finance · explained simply

Pay your suppliers now. Sell, then settle.

Funding to pay suppliers for goods — often imports — before you’ve sold them. Trade finance bridges the gap across your supply chain, so you can fulfil orders you couldn’t otherwise afford to.

The simple version

What is trade finance?

Trade finance funds the buying side of your business. When you have confirmed demand but need to pay a supplier before your customer pays you, trade finance provides the cash to purchase the goods — covering the gap from paying your supplier to selling the stock. It’s often used to fund imports, and it pairs naturally with invoice finance on the selling side, giving you funding across the whole trade cycle.

In short: it bridges the gap between paying for goods and getting paid for them — so a big order becomes something you can say yes to, not turn away.
In plain English
Trade finance

Funding that pays your suppliers for goods ahead of sale — frequently used for imports and confirmed orders. It covers the purchase-to-payment gap and works alongside invoice finance to fund the full cycle, from buying stock to collecting from your customer.

Who it’s for

Who it suits best.

Trade finance fits product businesses that have to pay for stock before their customers pay them.

Importers & wholesalers

You buy goods — often from overseas — to sell on, and suppliers want paying before your customers do.

Distributors & traders

You purchase stock to fulfil orders, and the cash to buy it is the thing standing in your way.

Confirmed orders in hand

You have firm demand or a purchase order, but need funding to buy the goods to fulfil it.

Supplier payment pressure

Suppliers ask for payment up front or on short terms, while your customers pay on longer ones.

Growing product businesses

Bigger orders are within reach, but they need more working capital than you have tied up in stock.

Cross-border buyers

You’re paying international suppliers and want funding built for the import cycle.

The benefits

What it does for your business.

You can say yes to bigger orders, pay suppliers with confidence, and keep your own cash free.

Pay suppliers on time

Meet supplier terms with confidence — and often unlock better prices or early-payment discounts.

Fulfil bigger orders

Take on orders you couldn’t fund from cash alone, and grow without turning business away.

Bridges the trade cycle

Covers the gap from paying for goods to being paid for them, keeping your supply chain moving.

Works with invoice finance

Combine with invoice finance on the selling side for funding across the whole buy-and-sell cycle.

Preserve your own cash

Keep your working capital free for running the business, instead of locking it up in stock.

Funds growth

Scale your buying power as demand grows — without an equity raise or a property charge.

How it works

Funding the buying side of the deal.

How trade finance works

Funding the buying side, from supplier payment to sale.
1Confirm the orderYou have demand or a purchase order, and a supplier to pay.
2Supplier paidTrade finance pays your supplier for the goods.
3Goods soldYou receive the stock and sell it to your customer.
4Facility repaidYou repay once your customer pays — often via invoice finance.
Paired with invoice finance on the selling side, trade finance can fund your entire cycle — from buying the goods to collecting from your customer.
Quick answers

Trade finance FAQs.

It funds the purchase of goods from your suppliers — frequently imports — so you can fulfil confirmed orders before your customers have paid you.
Usually once you’ve sold the goods and your customer pays. Many businesses pair it with invoice finance, so the sale invoice funds the repayment.
Yes — that’s a natural fit. Trade finance covers the buying side and invoice finance the selling side, funding the whole trade cycle.
Often, yes. With the cash to pay suppliers up front, you can take on bigger orders and negotiate stronger terms or discounts.
Trade finance works best where there’s a clear order or firm demand to repay against. We’ll look at your suppliers, customers and the order in question.