Our lending partners
Purchase stock/inventory without using your cash reserves
Pay the facility back once you sell your
Can work with domestic and international
What are trade loans?
Trade loans, or ‘trade finance’, refers to several short-term financial services aimed at businesses who trade domestically and/or internationally. A trade finance service facilitates a transaction between your business and a supplier by allowing your business to order high levels of stock that it may not be able to afford before payment is made.
How trade loans work
When a business receives a confirmed order beyond what they already stock, they will look to honour that order by buying in bulk from a wholesaler. But if the order is worth more than the seller can afford, they’ll need to access those products another way – usually via trade loans.
At its most simple level, trade finance allows your company to purchase much needed stock from domestic or international suppliers without having to use your own cash reserves. Instead, your supplier will invoice your trade finance lender and they will pay this invoice upfront. The lender will then charge you interest over 30-120 days until you sell this stock and can repay the lenders.
Suitability: Businesses in the B2B space that have an existing order with a supplier.
Purpose: For those looking to purchase a large order from a supplier without having to pay upfront.
Amount: Loans ranging from £25k – £2m.
Term: No fixed term – repayment will be made when stock is sold.
Cost: Generally between 1.25% and 3%. Variable depending on the size of the order.
Security: Security will be taken on the purchase order and a personal guarantee may also be taken.
Speed: Decisions can be made within 48 hours.
What are the benefits of trade loans?
If your business is not yet ready to manage big orders, you can use trade loans to enable the transaction. This allows your business to afford higher quantities of products and make more sales.
Make purchases quicker and more seamlessly with trade loans. Whatever you need to purchase, you can rest assured there will be no bumps in the road when trade finance is involved.
Transparency & security
At Aurora Capital we make sure our lenders provide ultimate transparency and security to our clients – and all trade loans will provide this too. Make life easier by working in unison with wholesalers, without risk.
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Is your business eligible for trade finance?
Whether you’re a small SME turning over £300k or a business turning over more than £1m, we have a lender for you. As long as you have received an invoice or are looking to place an order with a supplier, you’ll be able to finance this and retain your much needed cash flow for day to day use.
Why choose Aurora Capital
for trade loans?
Aurora Capital are experts in business funding in all capacities, and have had years of experience helping clients raise the necessary capital to grow and expand.
Our powerful decision engine pairs businesses looking for quick loans with trusted lenders offering great interest rates and other repayment terms. Whether you’re looking for trade loans, secured or unsecured business loans or property finance, we have the expertise to guide you toward the best decision for you and your business.
Trade Loans: FAQs
How long will it take for trade loan funds to be paid?
Once you have your account set up, the funds can take just one to two days to reach your suppliers.
What documentation will I need to provide?
We require financial information to properly assess your business. This usually includes:
- 2 years of full accounts
- 12 months of management accounts
- A list of aged debtors / creditors
How long do I have to pay trade loans back?
Most lenders will give you up to 150 days (5 months) to repay. You can choose to repay from your sales or add an invoice finance facility to support the payment.
Why consider Aurora Capital for trade finance?
Finding the lenders who are willing to offer trade finance to smaller businesses can be difficult. Our expert team can help any business in need of trade finance, helping to find the best interest rates and advise on best practice.
Get your free, no obligation quote today!
Prefer to talk? Call us on 020 3355 7462
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