Aldermore Bank is launching a new funding facility specifically aimed at supporting importers and wholesalers.
Many firms struggle to pay for large purchases especially when buying goods from overseas. Businesses importing goods often need to pay suppliers upfront which can create cash flow pressures making it difficult to meet their customer delivery schedules. Available immediately, Aldermore’s Trade Finance product provides working capital to pay suppliers at the time the goods are shipped, providing funding for the period until payment is received from customers.
Importing and wholesaling are major contributors to the UK economy; the annual value of goods imported now exceeds £400 billion. Businesses in these sectors often need levels of working capital above that offered by traditional methods of bank finance and that’s where Aldermore’s new product can help.
Trade Finance is the second SME funding solution to be developed by Aldermore’s new Specialist Finance team.
Andrew Dixon, Director of Specialist Finance at Aldermore, said: “Traditionally the market for Trade Finance has been an area with more demand than supply so we’re looking to address this and help the UK businesses access the funds they need to grow.
“Many of these companies are seasonal businesses which require a high level of working capital at certain times of the year. This often results in businesses experiencing severe cash flow pressure in their peak seasons; we want to help them through these periods by providing the finance they need to achieve their full potential.”