Cashbook Finance
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FCA-registered UK lender FRN 782472 (opens the FCA register in a new tab)

Pay your suppliers now. Sell, then settle.

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.

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Not sure yet? Check eligibility in 2–3 minutes, or talk to a director.

Reviewed by , Director & CMO.Updated

Illustration

The trade cycle · one order

A £100,000 supplier order, paid on day 0

  1. Supplier paidDay 0 · funded
  2. ShippedIn transit
  3. Stock soldDay 45
  4. Customer paysDay 75 · repaid
Supplier paid up front
£100,000
Customer pays · day 75
£125,000
Your margin after fees
£23,000
£100,000
Gross margin
Customer terms

A £100,000 supplier order sold at a 25% margin for £125,000, customer paying on day 75: trade finance pays the supplier up front; you keep about £23,000 after an illustrative fee.

Supplier paid up front; settled when your customer pays. Illustrative only: goods sold 45 days after the supplier is paid and a fee of about 2%. Actual terms depend on the transaction.

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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: trade finance bridges supplier payment and customer receipt.

In plain English · Trade financeFunding 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.

Cashbook Finance facts. Cashbook Finance provides transaction-specific trade finance to UK businesses with an evidenced purchase and repayment route. Assessment focuses on the confirmed order or route to sale, supplier verification, margin, shipping, currency exposure, end-customer quality and the proposed repayment route.

The benefits

What trade finance does for your business.

  • 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.

  1. 1

    Confirm the order

    Demand · a supplier to pay

    You have demand or a purchase order, and a supplier to pay.

  2. 2

    Supplier paid

    Verified · approved instructions

    Trade finance pays your supplier for the goods.

  3. 3

    Goods sold

    Delivered · invoiced

    You receive the stock and sell it to your customer.

  4. 4

    Facility repaid

    Customer pays · repaid

    You repay once your customer pays – often via invoice finance.

The trade cycle

Supplier → stock → customer.

Paired with invoice finance on the selling side, trade finance can fund your entire cycle – from buying the goods to collecting from your customer.

Trade finance vs invoice financeSupply chain finance

  1. SupplierFundedSupplier paid up front
  2. StockIn transitFreight, duty and title tracked
  3. CustomerPaysSettled when your customer pays
Use
Supplier payments and stock orders
Evidence
Purchase orders, margin and counterparties
Exit
Customer receipt or linked receivable

Facility conditions

Transaction flow must remain controlled end to end

The supplier, buyer, goods, landed margin, title and repayment route are reviewed as one transaction.

  • Supplier payment Funds go to the verified supplier under approved instructions.

  • Shipment and delivery Freight, duty, insurance, title and delivery milestones are monitored.

  • Buyer proceeds Repayment comes from the documented sale and customer payment route.

Buying from overseas? Export and import invoice finance.

Proof you can check

Judge us on the record.

“The team reviewed the complete transaction rather than simply funding a supplier invoice. They checked the supplier, customer order, landed cost, margin and repayment route before committing funds.”

Commercial Director, UK Distribution CompanyWholesale and distribution

View all case studies

Trade financeVerified anonymised case study · Wholesale and distribution

Direct trade-finance facility supports a confirmed wholesale order

A UK distributor received a confirmed order from an established wholesale customer but did not have sufficient working capital to pay the overseas supplier before the goods were shipped.

Amount range
£200,000–£350,000 transaction
What changed
Freight charges increased after the original order was agreed, reducing the expected gross margin. The supplier also requested payment to a bank account that differed from the account used on an earlier transaction.
Outcome
The payment instructions were independently verified, and the transaction economics were recalculated using the revised freight cost. The facility proceeded after the distributor agreed an amended sales price with its customer, restoring an acceptable margin and repayment buffer.

Verify before you share documents. Three independent registers hold the record for this firm. Cashbook Finance Limited is registered with the Financial Conduct Authority under Firm Reference Number 782472. Registered office: Cumberland House, 24–28 Baxter Avenue, Southend-on-Sea, Essex SS2 6HZ. Companies House 10723098: Active · incorporated 2017. ICO register ZB545200. The register links at the top of this page open each official record. All published figures are collected on the company facts page.

Who it’s for

Who trade finance suits best.

Suitability profile

  • 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.

Sounds like you? Check eligibility

Before you apply

What we need to review trade finance.

“Before recommending trade finance, I want to understand supplier payment timing, confirmed demand, margin and how the trade cycle repays. If that cannot be explained clearly, the structure is probably not ready.”

Endrit BeqajWhat I look for first

Prepare properly

What speeds review

  • Supplier quote, pro forma or invoice
  • Customer order, repeat demand or sales evidence
  • Gross margin and landed-cost summary
  • Shipment or delivery timetable where available
  • Repayment route, often from invoice finance once the goods are sold

What slows or weakens the case

  • Speculative stock without confirmed demand
  • Thin margin once duty, freight and delays are included
  • No clear route from supplier payment to customer receipt

Upload them in the client portal, encrypted in transit and at rest

Worked example

One order, start to finish.

You buy £100,000 of goods, sell them for £125,000 and your customer pays on day 75.

The supplier is paid on time and you keep the margin, less the fee.

One order, start to finish.: the figures
Supplier paid up front£100,000
Trade finance fee, about 2%£2,000
Customer invoice£125,000
Repaid from your customer’s payment on day 75£102,000
Your margin after the fee£23,000

Illustrative: goods sold 45 days after the supplier is paid and a fee of about 2%, as the console above assumes. Longer cycles cost more.

Official sources

Official guidance and legislation on the rules this page refers to. They explain the rules in general; take advice on your own position.

Quick answers

Trade finance FAQs.

All invoice finance options Case studies

What can trade finance pay for?

It funds the purchase of goods from your suppliers – frequently imports – so you can fulfil confirmed orders before your customers have paid you.

How is it repaid?

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.

Can it be used with invoice finance?

Yes – that’s a natural fit. Trade finance covers the buying side and invoice finance the selling side, funding the whole trade cycle.

Will it help me win larger orders?

Often, yes. With the cash to pay suppliers up front, you can take on bigger orders and negotiate stronger terms or discounts.

Do I need confirmed demand?

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.

How long does a trade finance transaction last?

Usually from paying the supplier until your customer pays for the goods, often between 30 and 120 days. Where the sale is invoiced, the repayment can be cleared by an invoice finance facility.

Guides on trade finance

Start an application

Say yes to the order, then sell.

Start an application

Not sure yet? Check eligibility in 2–3 minutes, or talk to a director.
Introducing a client? Work with us as an intermediary.