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What is trade finance and how can it help your SME?

In the world of small and medium-sized businesses, the saying ‘first impressions last’ is particularly important. As an SME, once you’ve connected with a new customer, you should focus on delivering high-quality products and services to maintain that good first impression. Delivering high-quality products and services is high up on the list for creating lifelong customer relationships. You want to be that business whose customers consistently return to. 

However, as a small or medium-sized business, you might be struggling to keep a consistent cash flow while also purchasing necessary stock or inventory from your suppliers, either locally or internationally. These challenges can be complex, especially while you are attempting to build customer relationships and retention. Nonetheless, these times can be challenging. As a result, you might be searching high and low for a solution that keeps you concentrated on your sales and reputation rather than investing cash flow.  

There is no need to search because we have an excellent solution for you and every other SME. That solution is flexible and affordable trade finance. What is trade finance? You might be wondering. Well, not only will we let you know, but we will also let you know how to find the right lender. Trade Finance is a line of credit for businesses to order stock from overseas and domestic suppliers. It allows a company to purchase its stock and inventory without interruption to its cash flow.

Instead of paying your suppliers for stock that you won’t be selling immediately, trade finance allows businesses to purchase the stock and then pay for it as you sell it, often using the value of your inventory as collateral for the finance. This way, your business can maintain a steady cashflow while responding to growth opportunities and dealing with regular day-to-day business. As a service, it also allows you greater purchasing power, which can support your business growth and ability to have more significant sales volumes.

So, once you’ve decided that trade finance is an excellent option for your small or medium-sized business, then you need to find a suitable trade finance facility. Every lender will offer different trade finance facilities to businesses. However, the problem for small and medium-sized businesses is that often the big banks won’t provide them with any finance. 

Therefore, most SMEs will need to search for non-bank trade finance options. Luckily there are lenders such as Grow Finance. Grow Finance knows that every business is different, so they offer tailored solutions explicitly aimed at SMEs. Whether you’re exporting, importing, or purchasing domestically, and no matter if you require a short-term or along-term solution, Grow Finance will have an appropriate option for your business.

So, if you’re worried about disrupted cash flow to avoid customer delays, then trade finance is the solution for your business. Ultimately you need to drive your business to success and make all the decisions, even the difficult ones. Non-bank trade finance is the best choice for SMEs in Australia, especially with Grow Finance. If you want to learn more about Grow Finance and their trade finance facilities, then give them a call on 1300 001 420




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