Trade Finance for Importers and Exporters

Trade finance funds the gap between paying your suppliers and getting paid by your customers. For an importer that gap can be four months: deposit on order, balance before shipping, six weeks at sea, then 60 day terms to the buyer. Trade finance covers that cycle so goods keep moving without your working capital being locked up in stock on a ship. Sadi's Commercial Finance is an NACFB and FIBA registered commercial finance brokerage and arranges trade finance facilities for UK businesses trading domestically and internationally.

Who it is for: importers paying overseas suppliers upfront, exporters offering credit terms to foreign buyers, wholesalers and distributors buying in bulk, and any business managing a complex or seasonal supply chain.

How trade finance works

You have a confirmed order from a creditworthy customer, or firm evidence of demand. The funder pays your supplier directly, the goods are shipped and delivered, you sell them, and the facility is repaid from the sale proceeds or rolled into an invoice finance line while you wait for your customer to pay.

The funder is lending against the transaction, not against your balance sheet. That means a business with a strong order book but limited assets can often fund a shipment it could not fund with a conventional loan. It also means the quality of the end buyer matters as much as your own accounts.

What we arrange

Letters of credit, a bank guarantee that your supplier will be paid once agreed shipping conditions and documents are met
Purchase order finance, where the funder pays your supplier against a confirmed customer order
Import finance, funding the period between paying a supplier and selling the goods
Export finance, funding you while you offer credit terms to overseas buyers
Supply chain finance, allowing suppliers to be paid early while you keep your own terms
Stock and inventory finance, funding goods sitting in a warehouse ahead of a season
Back to back facilities combining trade finance with invoice finance so the whole cycle is covered end to end
Currency hedging and forward contracts, fixing the exchange rate between order and payment

Key features

Letters of credit and purchase order finance
Suppliers paid on time, which often unlocks better pricing and priority production
Currency hedging options to remove exchange rate risk
Facilities that revolve as shipments complete
Often combined with invoice finance so the funding runs from order to customer payment

How to get trade finance with Sadi's Commercial Finance

Speak to a specialist. Tell us about your supply chain, trade routes and payment terms on both sides. We respond the same working day.
Share supplier and order details. Purchase orders, supplier terms, shipping arrangements and who your end customers are.
Get matched with a lender. We connect you with funders experienced in your goods and your trade routes, which matters more here than in any other product.
Structure the facility. Letters of credit, purchase order finance, currency hedging or a combined trade and invoice line, as the transaction requires.
Documentation and compliance. Trade facilities involve more paperwork than most lending, including shipping documents and sanctions checks. We manage that with you.
Suppliers paid, goods move. Funds release to suppliers on time, and you repay once the goods are sold or your customers settle.

What lenders assess

The transaction comes first: is there a confirmed order, is the end buyer creditworthy, is the margin on the deal enough to absorb the finance cost, and are the goods readily saleable if the buyer walks away. Perishable or highly specialised goods are harder to fund than commodity stock with an obvious secondary market.

Then the counterparties: how long you have traded with this supplier, their reliability, the country risk on the route, and the shipping and insurance arrangements. Finally your own position, meaning accounts, existing facilities, any charges over the company and the directors' experience. Track record with the same supplier and the same buyer is worth a great deal.

What it costs

Pricing is normally a facility or arrangement fee plus a charge for the period the funds are outstanding, often quoted per 30 days rather than annually because the cycle is short. Letters of credit carry bank issuing fees, and there may be document handling charges. Currency hedging is priced separately.

The right comparison is the finance cost against the margin on the transaction and against what paying your supplier upfront buys you, since early or confirmed payment frequently earns a discount that offsets much of the cost. Our broker fee is disclosed in writing before you commit.

How long it takes

A new facility typically takes two to six weeks to put in place, because the funder is underwriting your suppliers, your buyers and the route as well as your business. Once the facility exists, individual shipments draw down quickly, often within days. If you know a large order is coming, start the conversation before you place it rather than after.

Case study

An electronics importer used trade finance to pay overseas suppliers upfront, securing better terms and faster delivery.

Why use a broker

International trade has a lot of moving parts: currencies, shipping, incoterms, supplier terms and country risk. Lender appetite is unusually specific here, and a funder comfortable with textiles from Bangladesh may have no interest in electronics from Shenzhen. We connect you with lenders experienced in your goods and your trade routes and help structure facilities that de-risk the deal rather than simply financing it.

We are registered with the NACFB and FIBA, and we will be straight with you about whether the margin on a transaction supports the cost of funding it.

Frequently asked questions

What is a letter of credit?

It is a guarantee from a bank that your supplier will be paid once agreed conditions are met, normally the presentation of correct shipping documents. It reassures both sides of a deal where the parties do not know each other well.

Can trade finance cover currency risk?

Yes. Hedging options and forward contracts can fix the rate between placing an order and making payment, so a currency move does not wipe out the margin on a shipment.

Is trade finance only for international trade?

No. Domestic supply chains can use trade and purchase order finance too, and the mechanics are the same wherever the supplier sits.

Do I need a confirmed customer order?

Usually. Purchase order finance is built around one. Some stock and inventory facilities will fund goods bought for general sale, but the terms are tighter and the funder will look harder at the resale market for the goods.

How much of the supplier cost will be funded?

It varies with the transaction and the counterparties, and a contribution from you is normally expected. The stronger the end buyer and the more established the trade route, the further a funder will stretch.

Can trade finance be combined with invoice finance?

Yes, and it is often the best structure. Trade finance funds the goods to your customer's door, then the invoice finance line takes over and funds you until your customer pays, covering the whole cycle in one arrangement.

What happens if goods are delayed or rejected?

The facility remains repayable, so shipping insurance and clear contract terms matter. A letter of credit helps because payment is conditional on correct documents, which gives you a degree of protection on quality and shipping specification.

Can a new importer get trade finance?

It is harder without a track record, but not impossible where there is a strong confirmed order from a creditworthy buyer and the directors have relevant experience. Expect a lower advance and a closer look at the supplier.

Related guides

Speak to us about trade finance

Send us the order, the supplier terms and who the end buyer is, and we will tell you what is fundable and what it will cost. We respond the same working day. Contact Sadi's Commercial Finance.