Our revolving business financing options offer the freedom and flexibility you need to keep your business moving forward.
Bid farewell to the hassle of funding limitations and welcome a seamless, revolving business financing experience designed just for you. Whether you’re in the world of imports, exports, or trading goods, we’ve got your back with financial solutions crafted to ensure your success.
At Finnex, we specialise in delivering revolving business financing solutions that cater to the distinctive needs of your enterprise. Our focus on trade finance means we offer flexible options like Line of Credit and Trust Receipt Financing, empowering your business to not just survive but truly thrive in the competitive market.
It’s time to take that first step towards financial flexibility and prosperity with Finnex by your side.
Trade Finance is a line of credit that helps minimise risks and increase the profitability of businesses involved in import/export trading. Trust Receipt Financing allows the borrowers to pledge their supplier’s invoices to the Lenders to pay their suppliers in exchange for an extended payment period that is later paid to the bank. Typically it is pegged to your business trade cycle which can be 30 days, 60 days, 90 days etc.
This helps a business owner to pay its supplier(s) for the goods ordered, gives more time for the business owner to convert goods to sales and allows the business owner to increase the capacity to order more goods. In addition, with suppliers receiving payment from the lenders almost immediately when goods or services are received, SME owners can leverage this advantage to negotiate better pricing with their suppliers.
Young businesses can apply for this facility with the assistance of the Trade Loan and Loan Insurance Scheme supported by Enterprise Singapore.
At our core, we truly get the ins and outs of international trade and the real struggles that businesses like yours go through. That’s exactly why we’ve put our heads together to create Trade Finance solutions that are all about making your day-to-day operations smoother, lessening those risky moments, and helping your business grow in a way that feels just right for you.
Extended Time for Sales Conversion: Trade finance allows for a longer period to convert goods into sales before repayment to the lender is due, enabling more flexibility in managing cash flow.
Unrestricted Cash Flow for Buyers: By deferring immediate payment, buyers can free up their cash flow to be utilised for other business needs, providing greater financial flexibility.
Improved Supplier Negotiation: Trade finance empowers buyers to secure more favorable terms from suppliers who typically require cash on delivery, leading to potential cost savings and better deals.
Trade finance is a versatile tool designed to support a diverse range of businesses engaged in international trade. Here’s a closer look at who can benefit:
Small and Medium-Sized Enterprises (SMEs)
SMEs often face barriers in securing traditional financing due to limited credit history or smaller operational scale. Trade finance provides these businesses with the necessary working capital to handle larger trade transactions, enter new markets, and manage cash flow effectively. It allows SMEs to compete with larger companies by providing access to financing and risk mitigation tools.
Large Corporations
Even well-established corporations can benefit from trade finance, particularly when dealing with complex, high-value international transactions. Trade finance helps these companies manage large-scale operations, optimize cash flow, and mitigate financial risks associated with global trade. It is also useful for managing supply chain financing and ensuring timely payments to suppliers.
Importers
Businesses that import goods from overseas can use trade finance to cover costs such as production, shipping, and customs duties before receiving payment from their customers. This ensures that they have the necessary funds to maintain inventory and continue operations without financial strain. Importers can also use trade finance to negotiate better terms with suppliers and manage cash flow effectively.
Exporters
Exporting businesses often face delays in payment or risks of non-payment from foreign buyers. Trade finance solutions such as letters of credit and invoice financing provide immediate payment or payment guarantees, improving cash flow and reducing the risk of non-payment. Exporters can use these solutions to enhance their financial stability and grow their business.
Startups and Growing Businesses
New businesses or those expanding into new markets often require additional funding to support growth and capitalize on new opportunities. Trade finance provides the necessary working capital to manage increased trade volumes, navigate market entry challenges, and achieve business growth objectives.
Trade finance is beneficial in several scenarios related to international trade:
Before Initiating Transactions
When preparing to import or export goods, trade finance can be used to secure the necessary funds or credit to cover initial costs, such as production, shipping, and customs fees. This ensures that transactions can proceed without financial delays.
When Facing Cash Flow Challenges
Businesses experiencing cash flow issues due to delayed payments from buyers or high upfront costs for imports can use trade finance to bridge the gap. It helps maintain operations and manage financial stress.
During Market Expansion
If your business is entering new international markets or scaling operations, trade finance can provide the additional working capital required to support increased trade volumes and mitigate financial risks associated with market entry.
For Managing Seasonal Fluctuations
Businesses that experience seasonal variations in trade volume can use trade finance to smooth out cash flow and ensure continuous operation throughout peak and off-peak periods.
Trade finance services are available through various channels:
Trade finance offers numerous benefits that make it a valuable tool for businesses involved in international trade. Here’s why you should consider using trade finance:
Improved Cash Flow
Trade finance solutions help manage cash flow by providing the necessary funds to cover expenses before receiving payment from buyers. This is particularly beneficial for businesses that need to pay for production, shipping, and other costs upfront.
Reduced Financial Risk
By utilizing instruments like letters of credit and trade credit insurance, businesses can mitigate risks associated with international transactions. This includes protecting against non-payment, political instability, and economic fluctuations, which can otherwise jeopardize financial stability.
Enhanced Supplier and Buyer Relationships
Trade finance can strengthen relationships with suppliers and buyers by ensuring timely payments and providing financial assurances. This helps build trust and can lead to better terms and conditions in future transactions.
Increased Competitiveness
With access to trade finance, businesses can take on larger orders, enter new markets, and compete more effectively. It provides the financial flexibility to seize growth opportunities and handle increased trade volumes without stretching internal resources.
Access to Working Capital
Trade finance provides a valuable source of working capital that businesses can use to support day-to-day operations, invest in growth, and manage seasonal fluctuations. This access to additional capital helps maintain operational continuity and stability.
Flexibility in Financing Options
Trade finance offers a range of products, such as invoice financing, supply chain financing, and export financing, providing businesses with flexible options to suit their specific needs. This adaptability ensures that businesses can find the right financial solution for various trade scenarios.
Enhanced Security
Using trade finance instruments provides added security for both buyers and sellers. Instruments like letters of credit ensure that payments are made only when specific conditions are met, reducing the risk of disputes and fraud.
Support for Market Expansion
Trade finance can facilitate market expansion by providing the financial backing needed to explore new markets and manage international trade operations. It helps businesses overcome financial barriers and capitalize on new business opportunities.
At Finnex, we understand the importance of trade finance in driving global commerce, and we are dedicated to empowering businesses with the financial tools and support they need to thrive in the international marketplace. Our expertise in trade finance, combined with our commitment to personalised service, positions us as a trusted partner for businesses seeking reliable and efficient trade finance solutions.
Key features of our Trade Finance through SME Loan Consultation include:
Whether you are looking to optimise your working capital, streamline your trade finance operations, or expand your global trade activities, our comprehensive suite of trade finance solutions, including Line of Credit and Trust Receipt Financing, is designed to meet your evolving business needs.
| 1 | Loan Quantum | 100% of the invoice from the approved supplier. |
| 2 | Interest Rate | COF / SORA + 1.5% – 3.5% p.a |
| 3 | Processing Fee | Up to 2.00% |
| 4 | Repayment Period | 30 to 180 days per financed invoice dependent on the Lender’s approval |
A step-by-step guide on how businesses can start using trade finance, including:
Select a Trade Finance Partner
Guidelines for choosing the right trade finance provider:
We understand our client’s business models and strategies to help our clients to structure and obtain the right credit facilities by objectively assessing their business profiles and documents before finding the most suitable financial institutions that could give them the highest approval chances.
We also try to get the best deal for our clients by looking for the lowest interest rates in the market, but this could still vary depending on the company’s financial standing and profile.
If your company is not able to qualify for a loan at the moment, we would advise on what areas you can improve to qualify in the future.
At the end of our sales process, a Fund Utilisation Planning on the newly acquired facilities will be conducted in an engaging session with the business owner to set the greater path to success.
Every client is important to us and we do our best to meet the estimated timeline given.
* Subject to the credit facility proposed and applied for, processing time may take longer or shorter.
• Company Establishment of more than 2 years
• Latest year's performance must be profitable.
• A company with Group Annual Sales Turnover of ≤ S$100million or Group Employment Size ≤ 200*
* Other eligibility criteria may apply depending on the Financier(s).
• NRIC copy (front and back) of directors/ partners/sole-proprietor
• Individual Income Tax Notice of Assessment (NOA) of directors/partners/ sole-proprietor for the last 2 years
• Company bank statements for the last 6 months
• Company financial reports/statements for the last 2 years
• Latest Aging List (Accounts Receivable & Accounts Payable)
• Top 5 Supplier and Customer Listing
* Requirements may vary depending on the Financier(s).
Trust receipt financing allows importers to take possession of goods and fulfll orders without tying up their working capital. This enables them to sell the goods and generate revenue before needing to repay the loan, thus improving cash flow and liquidity.
Banks play a pivotal role in trade finance by offering a range of financial instruments and services to support international trade activities. This includes issuing letters of credit to facilitate secure payment terms between importers and exporters, providing trade loans to finance specific transactions, and offering financing options such as lines of credit and trust receipt financing to address the working capital needs of businesses engaged in cross-border trade.
Additionally, banks also provide trade finance advisory services to help businesses navigate the complexities of international trade and manage associated risks effectively.
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