How to Choose the Right Purchase Finance Company

When you arrange trade finance or a purchase finance agreement it is vital you choose the right provider to work with. The stakes are often high when you want to buy goods from overseas, or do business with a provider where the deal could make or break your business. Trade finance is a specialist source of funding that helps companies buy goods at home or overseas, when the seller won’t offer terms. It can make the difference between surviving as a business and going under, which is why it is important to choose your financer wisely. Consider these points when making your decision.

Will They Work With Me?

Some finance providers will only offer trade finance to well-established companies. Others are more suitable for start-ups and smaller businesses that do not have extensive trading records. Whatever your situation, there is a good fit out there but you have to look around and make sure you are offered what you need.

Do They Understand My Needs?

Often trade finance needs can be complex. Many businesses undertake complicated import procedures which involve different components and a number of different countries or facilities. If your import needs are complicated, you need to find a finance provider with experience in these types of trade setups. Ask what kind of trade finance agreements the company has put in place with companies similar to yours, or in circumstances that match your own.

Ask About Terms

It is important to be clear about terms and conditions associated with the trade finance deal as this can turn a possibility into a no-go. Check with the finance provider what is covered, and whether there is further help provided for the logistics of importation. If you are looking for a certain type of deal then check to see if this can be arranged.

Do They Offer Full Supply Chain Finance?

In many cases, you may need to have someone handle all the aspects of the purchase such as collecting monies and sales ledger management. Or you may have the opposite need – simply a line of credit that allows you to purchase goods without terms.

Ask for Feedback

When you enter into any financial agreement you need to know that the provider is reputable and professional, and trade finance is no exception. Ask for testimonials and for details about other clients the provider has assisted. Look for how long the company has been in business and the direct experience they have in trade finance. If you have questions, make sure the company is open and honest with the answers they give. When you choose your finance company wisely you will be rewarded with a professional, useful finance deal that can really help your business to grow.

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