Accounts receivable
Consider timing between invoicing and customer receipt, together with the underlying invoice and counterparty context.
Trade Financing
When customers pay later but suppliers need to be paid now.
Trade-related financing questions often begin with timing: purchases, supplier obligations, invoices and customer receipts do not always move together.
THE BROKERAGE ADVISORYSituation
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Business financing · Trade · Property · Project · Construction & Engineering
The trade cycle
Where can the cash-flow gap open?
Trade financing may be relevant when supplier payments, purchases, invoices or customer receipts create a funding need within the trade cycle. The discussion starts with what is being bought or sold, the counterparties involved and when cash is expected to move.
Purchase / order→Supplier obligation→Goods / delivery→Invoice→Customer receipt
The sequence is illustrative. Actual payment timing and financing availability depend on the transaction and the relevant financier’s assessment.
Possible areas
Different trade situations raise different financing questions.
Trade financing can cover several transaction-linked situations. The right route depends on the structure and evidence behind the transaction.
Accounts payable
Consider supplier payment obligations, purchase terms and the point at which cash is required.
Invoice financing
Look at the invoice, debtor and underlying transaction rather than treating an invoice as a standalone product request.
Import financing
Consider the purchase transaction, supplier terms, the goods involved and when payment obligations fall due relative to expected business receipts.
Export financing
Consider the customer transaction, supporting documents, the counterparty and when receipts are expected relative to shipment.
Working-capital timing
The financing question may be about bridging timing rather than funding the business as a whole.
Assessment
What usually needs to be understood?
Before deciding on a route, the transaction and its supporting information need to be clear.
- 01
Transaction
What is being bought or sold, to whom, under what terms and at what stage.
Manufacturing and wholesale financing situations → - 02
Documents
Invoices, contracts, purchase orders, shipping or other supporting documents where relevant.
What information to prepare → - 03
Counterparties
The role and context of suppliers, customers and other parties in the transaction.
- 04
Timing
When the cash is required and when receipts are expected to arrive.
Start with the situation
Is a trade cycle creating a funding timing problem?
Discuss the transaction and the timing first. We can then clarify which financing conversation may be relevant.