Which depends on the specific needs of your business - Purchase Finance and Transaction Finance.
Far from a ‘one size fits all’ solution, our flexible trade and supply chain finance solutions are a vital ingredient in our clients' funding mix.
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Finance, Maurice Ezekiel.
Which depends on the specific needs of your business - Purchase Finance and Transaction Finance.
Simply an ‘overdraft’ for paying your suppliers.
Your Purchase Finance facility is straight forward and unlike traditional Trade Finance, is not linked to a customer order.
With Purchase Finance, we fund any goods that you are purchasing for resale, even if they are for inventory. You repay us up to 120 days later.
The complete trade finance solution, sometimes referred to as Purchase Order Finance.
Your transaction finance facility is designed to fund the entire cash cycle, using your customers purchase order as security.
We fund the purchase of the goods from your supplier (including import costs if required) and get repaid when your customer pays the final invoice.
“The speed and simplicity of our Woodsford Tradebridge facility enables us to take advantage of opportunities that our bank lines do not”.
CFO Agri-commodities Trading House
Woodsford BridgeIT is our unique, easy to use online portal for you to see and manage your facility.
You load and approve invoices directly in the system and have complete visibility over the payment made and repayments due.
The system is especially powerful for our transaction finance solution where the system automatically clears supplier payments against the corresponding sales invoices.
We don’t have any restrictions on which sectors we can fund (with-in reason!) although our current client base tends to be mostly in the retail/wholesale and manufacturing sectors.
Trade Finance is only suitable for purchasing trade goods, so if you require the funding of services (e.g. for sub contractors) our Supply Chain Finance product might be more suitable.
With our private funding and flexible approach, Woodsford TradeBridge do not take a check-box approach to lending. We will consider any well run company, but as a rule of thumb you can consider the criteria below.
Purchase Finance is particularly suited to companies with a turnover over £2M. You will need a healthy balance sheet with net assets of at least 200% of your requested limit or a good record of profitable trading.
Transaction Finance can be used in many more situations, from new start companies to large commodity transactions. We will be looking for secure customer orders, a good product and your track record in this sector (maybe with a previous company).
Woodsford Trade Finance is funded by a mixture of family office investment and senior bank lending from a large European bank. This gives us both the flexibility to be truly innovative and well as offering competitive rates. For example, we are able to actively fund good companies in sectors where banks have retreated.
Woodsford have a 30 year track record of successful investment in both the finance and real estate development/construction sectors.
We can fund almost any supplier that is not a related company. We fund suppliers in most countries from China to India to Brazil, infact any country where there is no trade restrictions or sanctions.
We look at security on a case by case basis, and for many of our clients we are able to offer a facility with no formal security. We do cover some of our exposure using credit insurance and will sometimes request cross company or limited personal guarantees
Woodsford Trade Finance facilities have been explictly designed to work together with other common funding products. Pretty much all of our clients have existing debt facilities such as invoice discounting or overdrafts.
We have partnerships with some of the UK’s most respected asset based lenders, so we can also put together a competitive, complete funding solution should you require it.
Purchase Finance is often a superior alternative for companies looking to fund their inventory. As we are lending against the value of your whole company (including the stock) we don’t need to do a complicated calculation every time you would like to draw funds. You can read more about the advantages of purchase finance here.
