Trade finance to fund stock and supplier payments
Trade finance helps businesses pay suppliers - whether based in the UK or overseas - for goods that will later be sold on, without having to find the full cost upfront from existing cash reserves. It can be particularly valuable when there's a gap between paying for stock and receiving payment from your own customers.
Quick overview
Used for
Trade finance is typically used to fund the purchase of stock or goods from suppliers, support import and export activity, manage seasonal buying patterns, and bridge the gap between paying suppliers and being paid by customers.
Suitable for
Suitable for businesses that buy goods for resale or use in production - including importers, wholesalers, distributors and manufacturers - particularly where order sizes or supplier payment terms create pressure on cash flow.
Clearpath helps you understand which trade finance structures are available, how they're costed, and which providers are best placed to support the type of trading your business does.
Typical benefits
- Helps you take on larger orders or new opportunities without depleting working capital
- Can support both domestic and international supplier relationships
- Funding can be structured around your trading cycle - from purchase order through to final sale
- May be combined with other facilities, such as invoice finance, to support cash flow across the full trading cycle
Key considerations
- Lenders will typically want to understand your supply chain, customer base, and the margins involved in each transaction
- Costs vary depending on the complexity of the trade, the countries involved, and the structure used
- It tends to work best where there's a clear, demonstrable chain from purchase to sale
- Some facilities are transaction-specific, while others provide an ongoing trading line - we'll explain which is more appropriate for you
Clear advice on trade finance, from first call to completion
Whole-of-market comparison
We compare trade finance across our panel of mainstream and specialist lenders to find options that genuinely fit your circumstances.
Plain-English guidance
We explain the costs, terms and trade-offs clearly, so you can make a confident, informed decision without the jargon.
A managed process
We prepare your case, liaise with lenders and keep you updated throughout - so you can stay focused on running your business.
Common questions about trade finance
Yes - many trade finance facilities are specifically designed to support import and export activity, including dealing with overseas suppliers and the additional complexities that can come with cross-border trade. We'll identify providers experienced in the markets you trade with.
You might also consider
Many businesses use a combination of finance types depending on what they're trying to achieve.
Talk to Clearpath about trade finance
Call for a clear, no-obligation conversation about whether trade finance is the right route - and what's realistically available to you.