Surpassing its US$2 billion target turnover, leading alternative financier Falcon Group has announced a turnover of US$2.3 billion. Profits have also increased to US$52 million, up from US$44 million the previous financial year. Trade Arabiareports.
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Businesses today have started sourcing suppliers from all over the world and this has led to brand new markets being opened for various products as well. The impact of this on cash flow cannot really be underestimated. This is the main reason why so many companies have now started searching for trade finance Manchester. They are looking for these innovative methods of getting funds without letting their business suffer in any way. This allows businesses to extend credit periods and also offer larger discounts to customers which will only benefit them in the long run.
This is a problem that a lot of businesses trading internationally face on a regular basis. And when businesses find it difficult to support suppliers or wait for payments from around the globe and try to run their day to day operations using an overdraft. When you enter into import or export agreements with countries such as India or China, they definitely need a system which will allow them to manage their relationships without putting any additional pressure on their cash flow. The main challenge here is basically educating businesses to teach them better ways of financing international trade with limited & expensive overdrafts.
When a company expands into a new country either through their customer relationships or supplier, they need to ensure that the bank in this country is sound financially. The main problem that most banks have is that their banking network is quite limited and this has quite a negative impact as far as international trade is concerned. Therefore, whenever a business tries to bridge the gap between its funding and expenses using a bank, it is very important for them to choose the right bank in their home country.
As far as these trade finance services are concerned, they can be tailor-made in order to meet the specific requirements of various individual businesses which result in improved financial management as well as cash flow. Let’s look at the simple example of getting finance with the help of documentary credit. The immediate disbursement of funds helps many companies. And when you get an advance against your import documentary credit, it will make it so much easier for you to negotiate discounts with your suppliers as well. So you see trade financing is an excellent low cost mode for businesses to get finance at a fixed rate.
So what are you waiting for? If you’re considering expanding your business into new countries then trade finance is the perfect solution for you.
Utilised as a flexible means of short term borrowing, trade loans secure the funds to finance goods in the exporting and importing trade. One of the most notable characteristics of a trade loan is that regardless of the trade method – open account, letters of credit or documentary credits – it is one of the best routes to financially source trade transactions to improve cash flow.
Trade loans are fully revolving credit facilities that allow you to use the funds when you need them, as long as you are able to pay the initial commitment fee. Trade loans are usually used for the purchase of goods and raw materials on a regular or one-off basis. This type of trade finance solution is mostly suited for manufacturers and wholesalers.
The Costs of Trade Loans
If you have read our brief explanation about Trade Loans before, you’ll know that there are three…
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