International Trade Finance

Companies trade overseas to increase their market share, compete globally and increase their revenue. However such companies who have the opportunities to take on additional business, may face a challenge in doing so, due to constraints on financial resources. This may be due to reasons such as seasonality of the business, rapid expansion, one-off large orders or restrictions imposed by buyer’s credit requirements. Because of these or more reasons companies face limitations of growth.

Trade Finance is the ability to provide financing for a transaction that spans from a supplier of goods “the seller” to the final customers “the buyer”. It can be in the form of guarantee of payment from a customer when goods are exported, the advance payment of a transaction so that goods can be produced, or the discounting of invoices from clients to avoid 30-180 day payment delays, trade finance can help reduce working capital problems. Trade finance is an umbrella term for the financing of goods or services used in international trade.

‘As an importer, you wish to strengthen your credit worthiness’. While importing you are often required to pay the full value of the goods upfront, which is often a strain on your working capital. With the help of Import Letter of Credit, a guarantee of payment can be provided to your supplier while protecting you from risks such as non-shipment of the goods.
‘As an exporter, you are looking for security of payment’. You would want to ensure that payment would be received for the goods exported. With the help of Export Letter of Credit, a conditional payment undertaking is issued by your buyer’s bank on their behalf which would provide you a guarantee that you will receive payment for the goods exported as long as you meet the terms of the Letter of Credit. Export Letters of Credit enable you to manage your cash flow effectively by securing a known currency, amount and payment date.

Vauraus™ Capital helps arrange financing facilities for small and medium enterprises, Traders, start ups and larger corporates operating in the International business marketplace. Companies who might be experiencing funding challenges with their existing bankers can avail our assistance to arrange for additional funds, issue Letters of Credit, Purchase Order Financing, Factoring while lowering the costs and risks of doing business internationally.

We have a network of banks, exclusive financing partners, freight forwarders, logistic companies and trade credit insurance companies which can provide a comprehensive solution to overcome the challenges of international trade and help your company move on a growth trajectory.