In simple terms, trade finance is when an exporter requires an importer to prepay for goods shipped.
The importer naturally wants to reduce risk by asking the exporter to document that the goods have been shipped as proof.
The importer’s bank assists by providing a letter of credit to the exporter (or the exporter’s bank) providing for payment upon presentation of certain documents, such as a bill of lading.
The exporter’s bank may make a loan to the exporter on the basis of the export contract.
THE KRIYA TRADE FINANCE SOLUTION
Kriya is one of the most effective trade finance companies, and is able to provide trade finance products for businesses that might not otherwise be able to get it elsewhere.
If you are a UK based exporter, Kriya can provide funding against foreign debtors which traditional providers might be reluctant to commit to.
It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business. With Kriya, you get:
- Fast funding: quick funding decisions and set-up
- Hassle free experience: easy to use digital interface
- Help in real-time: personal customer support
- Straightforward costs: no hidden fees
Related: Read our comprehensive guide on Trade Credit