MERCHANT  FINANCE - Funding For Businesses Engaged In Trade

100% Funding - Method 1

Funding purchase of finished goods usually by L.C. payment to Supplier, against a confirmed order from an approved end buyer(s); Funding the complete transaction, from order to delivery with repayment by collection of the sale proceeds from the end buyer(s).

100% Funding - Method 2

Funding purchase of finished goods usually by L.C. payment to supplier, against a confirmed order from an approved end buyer(s). Funding the transaction up to the point of delivery and invoice, in partnership with the client's Factor or Discounter from whom repayment is obtained.

REVOLVING PURCHASE FACILITY

Allows the purchase of finished goods by immediate supplier payment repayable by 90 day bills of exchange. The facility is usually unsecured and does not normally affect other lenders security. Revolving purchase lines of credit are provided by leading providers of Trade Finance facilities.

The line of credit extended depends on the financial position of the business, which is agreed by "WCI" after assessing the accounts of the business. Typically lines offered would be between £20k and £150k.

Once the line is agreed the client may approach Trade Finance Provider and request that a suppliers invoice is paid or an LC is issued on their behalf.

The client pays Trade Finance Provider their service fee at that time (depending on the size of the line usually 5% to 6%) and signs a 90 day bill of exchange & usually a trust receipt. Trade Finance Provider will pay the supplier or issue the LC and collect the money back from the client 90 days later.

Key Features
Facility is usually unsecured with no charges or debentures required therefore should not impact on borrowings from other lenders.

The client is free to move and sell the goods purchased as required. Once the advance has been repaid at the end of the 90 day period a new transaction can be undertaken…hence the term revolving purchase facility.

Facilities can be made available to Limited companies, sole traders or partnerships. Goods purchased should be finished goods ready for re-sale which makes them in effect, self liquidating within a 90 day cycle.

We usually seek directors guarantees for 15% of the line (with a minimum of £5k). Once the facility is in place transactions can be processed usually within a few days, sometimes urgent requests can be handled the same day.

SELECTIVE CUSTOMER FINANCE

Single or multiple customer transactions – either as a one off, or as regular / repeat business. This facility can operate without the need to obtain a book debt waiver from any Banker / Debenture holder.