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Revolving
purchase finance |
Allows the purchase of finished goods (imported
or UK sourced) 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 one of the UK's leading providers of Trade
Finance facilities.
The product is available to owner managed businesses
registered in the UK.
The line of credit extended depends on the
financial position of the business, which is
agreed after assessing the accounts of the business.
Typically lines offered would be between £20k
and £150k.
Once the line is agreed the client may approach
and request that a suppliers invoice is paid
or an LC is issued on their behalf.
The client pays 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.
We will pay the supplier or issue the LC and
collect the money back from the client 90 days
later.
KEY FEATURES
 Facility
is usually unsecured with no charges or debentures
required therefore should not impact on borrowings
from other lenders.
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
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