Trade Finance

The supply chain is often described as a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. In case of a product, there is the physical transportation of the product, the financing and payment of the product, and all the communication necessary to organize that trade. SLI not only takes care of physical transportation, but can also give you access to trade finance so as to facilitate such trade.

Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods (shipper) as well as a buyer (consignee). Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade, and most trading companies operate on a mix of in-house cash flow as well as credit lines with banks.

While credit lines with banks are of a fixed amount difficult to increase, trade is often irregular and knows peak and slack seasons, with varying needs for financing as well. When you are in drastic need of a supplementary financing for your trade, and have already used all your cash flow as well as the credit lines with the various banks you use, we may be of assistance to you.

Without being a financial institutions itself, SLI has partnered with financial institutions, which can offer you all or part of:

  • Payment guaranty to your suppliers

  • Purchase administration work

  • Purchase of goods on your behalf

  • Invoice goods for you to your customer

  • Collect payment from your customer and refund you the margin minus their fee and commission

Whether you are a SME or a large organization, these trade finance services are offered to you. They facilitates the financing of your cash cycle irregularities. Our partner's job is based on the purchase of goods on your behalf and on the granting to your business of a settlement period. This allows you to accept projects and trades, which you would otherwise have to decline due to insufficient trade financing capabilities. It allows you to grow further and faster.

While increasing credit lines with banks usually takes months, we can provide you with an answer within a week, thanks to our fast decision making process. This may sometimes allow you to say "yes" to that new customer... For more information on how we can support your trade finance needs, please contact your local SLI representative.