1. Identify the stock or order
A purchase order, supplier invoice, import contract or stock requirement.
Trade financeFund the stock.
Fund the stock.
Pay the suppliers.
Settle when you sell.
Trade finance for UK SMEs buying, selling and importing goods — bridging the gap between supplier payment and customer payment without draining working capital.
Book a demoThe problem
Demand without cash is just pressure
Importing stock. Paying overseas suppliers. Funding large orders. Bridging the gap between purchase and customer payment. Even profitable businesses run aground when supplier terms and customer terms don't line up.
Trade finance funds the goods, the order or the supplier payment — and gets repaid when the stock sells, the invoice is collected, or an agreed event triggers.
How it works
From order to repayment
2. Lender assesses
Supplier, buyer, margins, goods, shipping terms, repayment route.
3. Supplier paid
Lender pays the supplier directly, or provides a facility you draw against.
4. Goods delivered & sold
You receive stock or fulfil the order.
5. Facility repaid
When goods sell, invoices collect, or the agreed repayment event hits.
Types of trade finance
Different structures for different supply chains
Import Finance
Funds purchases from overseas suppliers, covering supplier payment to customer sale.
Export Finance
Supports cash flow while waiting for international customers to pay.
Purchase Order Finance
Funds supplier costs against a confirmed customer order.
Stock Finance
Funds inventory purchases, particularly where stock must be bought ahead of sale.
Supplier Payment Finance
Pay suppliers earlier while spreading the cash flow impact over time.
Letters of Credit
Gives a supplier confidence payment will be made once agreed conditions are met — common in cross-border trade.
Who's it for
UK SMEs that buy and sell physical goods
Wholesalers & distributors
Pay suppliers before customers pay you. Fund larger orders than working capital alone allows.
Importers & exporters
Bridge international shipping times and currency exposure with confidence.
Manufacturers
Fund raw materials and finished goods through the production-to-sale cycle.
E-commerce & retail
Stock up ahead of seasonal demand without draining working capital.
Trade finance vs other funding
Where trade finance sits in the funding stack
Trade finance vs invoice finance
Trade finance funds goods before they sell. Invoice finance releases cash after they sell. Many businesses run both together to fund the full cycle.
Trade finance vs a business loan
A loan suits general funding needs. Trade finance suits requirements tied to specific purchases, suppliers, orders or trading cycles.
07 / WHAT IT COSTS
The headline rate is only part of the picture
Typical charges include interest, arrangement fees, transaction fees, document fees, currency conversion costs, and early repayment charges. Costs depend on facility size, transaction value, supplier location, buyer strength, gross margin, currency, term, and goods type.
FX margin, payment fees, security requirements, facility limits, stock eligibility and repayment flexibility all affect the true cost — often more than the rate itself.
Lender criteria
What lenders actually look at
The clearer the transaction and the cleaner the repayment route, the easier it is to fund.
Book a callThe goods
What they are, who supplies them, who buys them.
Commercial terms
Margins, payment terms and shipping arrangements.
Orders & history
Confirmed orders, sales history and similar transactions.
Currency & cover
FX exposure and insurance arrangements.
Before you sign
Five questions worth asking before you sign
We will work through every one with you before you commit.
- 1. Is the funding linked to a specific order, supplier or stock purchase?
- 2. What percentage of the purchase will be funded, and does the lender pay suppliers directly?
- 3. Are imports, exports or overseas suppliers supported — and which countries are excluded?
- 4. How are FX costs and insurance handled?
- 5. Does the repayment structure match your actual trading cycle?
Get started
Fund the goods, grow without straining cash.
Stable helps UK SMEs compare trade finance providers, understand the true cost of funding, and secure facilities that fit how the business actually trades.
FAQs
Frequently asked questions
What is trade finance?+
Funding used to support the buying and selling of goods — bridging the gap between paying suppliers and receiving customer payment.
Can trade finance be used for imports?+
Yes. Import finance helps UK businesses pay overseas suppliers and fund goods through production, shipping and sale.
Can it be used for exports?+
Yes. Export finance supports businesses selling internationally, particularly where there are long payment terms or shipment delays.
Is it only for international trade?+
No. Trade finance is often used internationally, but it also supports domestic supplier payments, stock purchases and purchase orders.
How is trade finance repaid?+
Usually linked to the sale of goods, customer payment, invoice collection, or an agreed repayment date.
Is it the same as invoice finance?+
No. Trade finance supports the purchase of goods before sale. Invoice finance releases cash after an invoice has been raised.
Can trade finance and invoice finance work together?+
Yes. Many businesses use trade finance to fund supplier purchases and invoice finance to release cash once invoices are raised — full-cycle funding.
What information do lenders need?+
Supplier and customer details, goods specifications, invoices, purchase orders, margins, shipping terms, recent accounts, bank statements and the repayment plan.