Trade Finance: Keep Imports and Exports Moving Smoothly
Expanding into global markets can boost your business, but international trade often ties up working capital. Trade finance helps UK businesses pay overseas suppliers upfront while giving you time to get paid by customers.
It’s a funding solution designed to support importers and exporters who want to trade confidently without cash flow pressures.
Apply Online in 5 Minutes
Decision in as little as 1 hour
Borrow £10k to £750k
UK-Based Support Team
No Fees to Settle Early
How Trade Finance with British Business Funding Works
Trade finance works by using international purchase or sales contracts as security for funding. Instead of tying up working capital to pay overseas suppliers, the lender covers the upfront costs, and you repay once your customers settle their invoices.
What this means step by step:
-
You place an order with an overseas supplier.
-
The lender pays the supplier (often in their currency).
-
You ship and sell the goods to your customers.
-
Once payment is received, you repay the finance plus fees.
Benefits of Trade Finance
Bridge the cash flow gap between paying suppliers and receiving customer payments.
Strengthen international supplier relationships.
Reduce risk with letters of credit or payment guarantees.
Support growth into new overseas markets.
Why Choose Trade Finance Over Other Business Loans?
Unlike a standard business loan, trade finance is tailored for cross-border trade. It gives you the confidence to grow internationally without tying up working capital.
At British Business Funding, we make business loans simple and fast. With a quick 5-minute application process, decisions in as little as an hour and funds available within 48 hours of approval, we’re here to keep your business moving forward without unnecessary delays.
What are the alternatives to trade finance?
Funding via
Business loans
Funding (No PGs) via
Invoice Finance
Funding via
Business Credit Cards
Funding via
Purchase Order Finance
Funding via
Revolving Credit
Commonly Asked Questions About Trade Finance
What is trade finance and how does it work?
Trade finance helps businesses fund the gap between paying suppliers and receiving payment from customers. A finance provider can fund the upfront cost of goods from an overseas supplier, allowing your business to import, sell and deliver those goods without tying up large amounts of working capital. The finance is then repaid once your customer pays.
How much can I borrow with trade finance?
British Business Funding can help eligible UK businesses explore trade finance from £10,000 up to £750,000. The amount available will depend on factors including the value of the transaction, your supplier and customer relationships, your trading history and the overall financial position of your business.
Can trade finance be used to pay overseas suppliers?
Yes. Trade finance is commonly used to pay overseas suppliers directly, helping UK businesses purchase stock, goods or materials without having to fund the full supplier cost from their own cash reserves. Depending on the facility, suppliers may also be paid in their local currency.
What types of businesses can use trade finance?
Trade finance is particularly suited to importers, exporters, wholesalers, distributors and other businesses involved in international trade. It can be useful where there is a delay between having to pay a supplier and receiving payment from the customer, especially when fulfilling larger orders or increasing the volume of goods being imported.
What is the difference between trade finance and purchase order finance?
Trade finance is a broad form of funding designed to support businesses buying and selling goods across international supply chains. Purchase order finance is more specifically linked to fulfilling a confirmed customer order, with funding typically used to pay the supplier needed to complete that order. There can be overlap between the two, and the most suitable option will depend on the structure of the transaction and when your business needs the funding.