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Trade finance is a tool that can be used to unlock capital from a company’s existing stock, receivables, or purchase orders. Explore our hub for more.
A common form of business finance where funds are advanced against unpaid invoices prior to customer payment
Also known as SCF, this is a cash flow solution which helps businesses free up working capital trapped in global supply chains.
BoL, BL or B/L, is a legal document that provides multiple functions to make shipping more secure.
A payment instrument where the issuing bank guarantees payment to the seller on behalf of the buyer, provided the seller meets the specified terms and conditions.
The release of working capital from stock, through lenders purchasing stock from a seller on behalf of the buyer.
This allows a business to grow and unlock cash that is tied up in future income
A tool that businesses can use to free up working capital which is tied up in unpaid invoices.
This is commonly used for trading businesses that buy and sell; having suppliers and end buyers
Technology, construction, telecommunications, PPE, and electronics
Raw materials, agricultural products, minerals, metals, and textiles
Pharmaceuticals, chemicals, and energy products
Automotive, aviation, and marine industries
Pharmaceuticals, healthcare equipment, and related sectors
Ores, minerals, metals, and concentrates
Retail stock, e-commerce, textiles, clothing, and consumer goods
Construction, infrastructure, project finance, and green finance
Construction, infrastructure, project finance, and green finance
Food, drink, dairy, confectionery, and alcohol
E-commerce, recruitment, legal services, and hospitality
Financing tomorrow's trade
Due to increased sales, a soft commodity trader required a receivables purchase facility for one of their large customers - purchased from Africa and sold to the US.
Purchasing commodities from Africa, the US, and Europe and selling to Europe, a metals trader required a receivables finance facility for a book of their receivables/customers.
An energy group, selling mainly into Europe, desired a receivables purchase facility to discount names, where they had increased sales and concentration.
Rather than waiting 90 days until payment was made, the company wanted to pay suppliers on the day that the title to goods transferred to them, meaning it could expand its range of suppliers and receive supplier discounts.
Managing Director,
BCR PublishingMichael Bickers is managing director of BCR Publishing, a UK specialist publishing company dedicated to the provision of in-depth market information on areas of business finance, particularly factoring and supply chain finance, through books, the Internet (factorscan.com) and global factoring conferences. He is author of 12 editions of Factoring in the UK, a market report and guide to the factoring industry in the UK; editor of nine editions of World Factoring Yearbook (published annually by BCR since 1996); publisher of the World Supply Chain finance Yearbook 2010 and 2011 (published by BCR); Editor of Equipment Leasing in the UK (HMSO, 1995); Editor of Venture Capital in the UK (HMSO, 1996); Series Editor, International Business Intelligence Reports (published by the Stationery Office Ltd, 1997 – 10 titles including International Trade Finance, Credit Insurance in the UK and Europe, Securitisation in Europe; Editor and joint author of A Review of Global Trade Finance and the Effects of the Current Financial Crises on Emerging Markets, A report commissioned by the World Bank, December 2008; and creator of factoring news and information portal, www.factorscan.com, published by BCR. His views, opinions and findings have also been printed in leading newspapers and journals.