Trade Finance (Import / Inventory Finance)

What it is

Short‑term funding to pay suppliers before goods are sold. Used for importing, manufacturing, or stocking inventory.

Ideal for:

• Importers
• Wholesalers
• Manufacturers
• Seasonal inventory cycles

AFNCF structures facilities around your stock cycle and integrates them with debtor finance if needed.

How it works

• Lender pays your supplier directly
• You receive goods
• You repay the lender when goods are sold (30–120 days)

Why use it (the Why)

Trade finance solves the supplier payment gap — when you must pay upfront but won’t receive revenue until goods are sold.

Pros

• Protects cashflow while buying stock
• Allows larger orders and better supplier pricing
• No property security required
• Supports seasonal or lumpy inventory cycles
• Can integrate with invoice discounting

Cons

• Higher cost than traditional bank funding
• Requires strong stock management
• Lenders may require visibility over purchase orders and logistics
• Not suitable for slow‑moving inventory

When it’s right

• You import goods with upfront payment terms
• You have reliable turnover and predictable sales
• You want to scale without tying up cash
• You negotiate supplier discounts for early payment