Trade finance – case histories for import or purchase in UK

Medical equipment imported from USA and sold to NHS Trusts. Purchased economically using a Supplier Undertaking (SU) in which the supplier sold on open account to the finance company.

 

Internet retailer supplying England Strip fell into receivership on a Thursday; on Friday the finance company bought goods from Umbro on an SU to enable supply to football supporters who wanted their shirts before the big game on the following Wednesday. The finance company then paid the Receiver for other stock to buy business for client and now buy from Umbro and Nike to enable continuing internet sales.

 

Purchase plasma screen components in Italy, Switzerland and UK. Assembled Italy, sold UK. Similar facilities for clothing, telecoms and communications clients.

 

Purchase assets from a receiver on 3 months credit. Client purchased business and sold sufficient assets within 3 months to pay us back. Several variations on this theme.

 

Purchased stock of Jacuzzis from vendor is retiring. Funds recovered from consumer sales.

 

Seasonal or short-term stock finance requirement. Temperature controlled container for the export of vaccines, grapes to make wine, coal, ice cream, crabs, CDs, Nan bread, “Sliderz” and others.

 

Trade Finance – export and international

Substantial capital goods manufacturer needed addition working capital to finance four large orders. The finance company paid 27 suppliers on time (some requiring Supplier Undertakings) and recovered from debts assigned to us from customers in UK, Germany and USA.

 

Bought lobsters from Russian fisherman, processed in Peru and sold to customer in Canada.

 

Issued Standby Letter-of-Credit as a performance bond to secure a transaction of a shipload of crude oil between two African countries.

 

Well-established lifeboat builder took over the orders of a company in liquidation to build fast offshore patrol boats sold under LC to government in Middle East. The finance company financed the build of these boats from start to delivery.

 

Specialised debt finance

Substantial software company; potential sales of licences but no assets; needed £100k to pay wages and rent; advanced against potential sales and existing license income.

 

Well-established supplier of timesheet labour to shipyards who normally operated without debt finance received one order for £400k over 8 weeks. Wanted finance only against that contract.

 

Consultancy services to small Plc. Payment due in 9 months. Arranged Bill of Exchange on Plc and discounted it as economical way of providing finance to client. 

 

 

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