How To Get Trade Finances For Small Businesses?

Posted by Anglo Cape on June 7th, 2017

Highly reliable trade finance for small business South Africa companies Offer Bridge and trade finance services for small and medium businesses in South Africa.  These service providers nurture an intimate relationship with their clients and they create an in depth understanding of their clients to deliver a financial solution that meets their short term financial needs. .

Fast processing and highly flexible solutions

Trade finance has been designed to help with the inventory purchase. It is a short term finance assistance over and above the current bank facility. Dependable service providers process all applications in a fast manner and they make the credit decisions within a few days.  Top service providers are not rigid in terms of business policies and they always come up with the most flexible solutions to address the unique needs of their clients.

Important documents to be submitted while applying

When a business submits an application, it has to provide the much needed financial information for assessing the viability of a trade finance facility. Some of the details you have to submit include inventory lists, forecast details, debtors and creditor’s age analysis, management accounts, and the latest yearly financial statements and all these details are handled in the strictest confidence to keep the clients comfortable and relaxed. 

Trade finance facility services are available for local as well as international transactions

The trade finance facility offered by reputed service providers can be utilized for local as well as international transactions. For a business that sources majority of its purchases locally, trade finance providers get a 30 or 60 day net payment term and this facility can be utilized to make the payment to the supplier in cash for obtaining a discount and the trade financier may extend the credit term according to the situation. This service can also be used for international transactions.   

The cycle of transaction

As a first step, order is placed by client with supplier and the short term finance solutions South Africa providers make the payment to suppliers according to the terms agreed between the client and suppliers. In the third phase, the finance provider draws an invoice on its clients based on the terms agreed between them and the client and the client receives the goods and makes use of them within their cycle to turn into a debtor and then into cash to pay the financial provider’s invoice in a timely manner. The client of the financial company gets ready to place another order and this cycle continues forever.  

Many businesses are looking for short term loans for small businesses in South Africa. Traditional South African banks are the most popular source of working capital finance for small and medium types of business. Unfortunately, these banks employ a conservative approach for granting credit and all their businesses mostly security dependant. The long delay and highly strict security norms create a growth constraint for many businesses and this problem can be easily solved with the help of trade finance direct supplier payment providers.

For More Info:- Stock Finance Solutions South Africa