£250,000 Trade Finance Facility Supports Import Growth
A UK business importing goods from overseas required additional funding to increase order volumes and support continued growth.
Strong customer demand presented an opportunity to expand, but the timing between paying international suppliers and generating revenue from the imported goods was placing increasing pressure on working capital.
The Requirement
The business regularly purchased goods from overseas suppliers for import into the UK.
As sales increased, the company wanted to place larger orders and take advantage of growing customer demand. However, suppliers required payment significantly earlier than the point at which the business would ultimately receive payment from its customers.
Approximately £250,000 of additional funding capacity was required to support the company’s purchasing cycle.
The Challenge
The underlying challenge was not demand, but timing.
Increasing order volumes meant committing larger amounts of capital to goods while they were being manufactured, shipped and ultimately sold.
Funding this entirely from existing cash reserves would have restricted the capital available for other areas of the business and potentially limited the company’s ability to take advantage of further growth opportunities.
The requirement therefore needed a facility aligned more closely with the company’s trading cycle.
The Solution
Revia reviewed the transaction, including the company’s purchasing requirements, supplier arrangements and wider financial position.
Rather than simply introducing additional general-purpose borrowing, we considered a structure designed specifically around the movement of goods through the company’s supply chain.
An appropriate trade finance facility was identified through our lender network, providing additional capacity to support payments to overseas suppliers.
The Result
A £250,000 trade finance facility was arranged, giving the business greater capacity to place larger orders without relying entirely on existing cash reserves.
The additional funding helped bridge the gap between supplier payments and the eventual sale of the imported goods.
With greater flexibility around its purchasing cycle, the company could increase order volumes while maintaining working capital for its wider operational requirements.
Trade Finance Through Revia
Businesses involved in importing goods can face significant cash flow gaps between paying suppliers and ultimately receiving payment from customers.
As transaction sizes increase, these timing differences can consume substantial amounts of working capital.
Revia works with businesses to understand the complete trading cycle before approaching appropriate lenders and structuring potential funding solutions.
By bridging the gap between the business and the lending market, we can help identify trade finance facilities designed around the underlying commercial transaction.
