100% Funding - Method 1
purchase of finished goods usually by L.C. payment to Supplier,
against a confirmed order from an approved end buyer(s); Funding
the complete transaction, from order to delivery with repayment
by collection of the sale proceeds from the end buyer(s).
100% Funding - Method 2
purchase of finished goods usually by L.C. payment to supplier,
against a confirmed order from an approved end buyer(s). Funding
transaction up to the point of delivery and invoice, in
partnership with the client's Factor or Discounter from whom
repayment is obtained.
purchase of finished goods by immediate
supplier payment repayable by 90 day bills of exchange. The
facility is usually unsecured and does not normally affect other
lenders security. Revolving
purchase lines of credit are provided by leading providers of Trade Finance facilities.
The line of
credit extended depends on the financial position of the
business, which is agreed by "WCI" after assessing the accounts
of the business. Typically lines offered would be between £20k
Once the line
is agreed the client may approach Trade Finance Provider and request that a
suppliers invoice is paid or an LC is issued on their behalf.
pays Trade Finance Provider their service fee at that time (depending on the size
of the line usually 5% to 6%) and signs a 90 day bill of
exchange & usually a trust receipt. Trade Finance Provider will
pay the supplier or issue the LC and collect the money back from
the client 90 days later.
Facility is usually unsecured with no charges or debentures
required therefore should not impact on borrowings from other
The client is free to move and sell the goods purchased as
required. Once the advance has been repaid at the end of the 90
day period a new transaction can be undertaken…hence the term
revolving purchase facility.
Facilities can be made available to Limited companies, sole
traders or partnerships. Goods purchased should be finished
goods ready for re-sale which makes them in effect, self
liquidating within a 90 day cycle.
We usually seek directors guarantees for 15% of the line (with a
minimum of £5k). Once the facility is in place transactions can
be processed usually within a few days, sometimes urgent
requests can be handled the same day.
SELECTIVE CUSTOMER FINANCE
multiple customer transactions – either as a one off, or as
regular / repeat
business. This facility can operate without the need to obtain a
book debt waiver from any Banker / Debenture holder.
Unlike Factoring/ Invoice discounting:
Advance up to 80% of invoice value
Bespoke personal service