Trade Finance (Import / Inventory Finance)

Short‑term funding to pay suppliers before goods are sold.

Trade Finance provides the working capital needed to purchase stock, pay suppliers, and manage inventory — especially when you must pay upfront but won’t receive revenue until goods are sold. It is used for importing, manufacturing, or stocking inventory and is ideal for businesses with seasonal or lumpy stock cycles.

What Trade Finance Is

A short‑term facility that bridges the gap between paying suppliers and receiving customer payments. It supports businesses that need to fund inventory before it generates revenue.

Who Uses It

Trade Finance is commonly used by:

• Importers
• Wholesalers
• Manufacturers
• Businesses with seasonal inventory cycles

These businesses often face upfront supplier payment terms, long shipping times, and delayed customer receipts — creating cashflow pressure that Trade Finance solves.

How Trade Finance Works

Trade Finance is simple and practical:

1. You place an order with your supplier
2. The lender pays your supplier directly
3. Goods are shipped and delivered to you
4. You repay the lender when goods are sold
   • Typically 30–120 days after receiving stock

This structure allows you to buy inventory without tying up cashflow.

Why Businesses Use Trade Finance

1. Protects Cashflow

You can purchase stock without draining working capital.

2. Enables Larger Orders

Buy more inventory when needed — especially useful for seasonal peaks.

3. Improves Supplier Relationships

Early or on‑time payment strengthens your position and may unlock better pricing.

4. No Property Security Required

Facilities are structured around stock cycles, not real estate.

5. Integrates with Debtor Finance

Trade Finance can be paired with Invoice Discounting to create a complete working capital solution.

Pros and Cons

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 Trade Finance Is Right for You

Trade Finance is a strong fit when:

• 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
• You need to fund inventory before revenue arrives

AFN’s Role

AFN structures Trade Finance facilities around your stock cycle, supplier terms, and cashflow rhythm. We negotiate lender terms, repayment windows, and integration with debtor finance where appropriate.

Our goal is simple: fund your inventory without constraining your business.      Contact us and discuss your needs