The Importance Of Trade And Stock Finance
Stock & Trade finance is a type of loan that allows businesses to borrow money against the value of their inventory. This can be a valuable source of funding for businesses that are growing or expanding, or that need to meet seasonal demand.
This type of finance is typically available to businesses of all sizes, but it is especially beneficial for small and medium-sized enterprises (SMEs) that may not have the same access to traditional forms of financing.
The Benefits
There are several advantages to this method that make it especially attractive to SMEs. Stock & Trade finance offers a number of benefits for businesses, including:
- Quick and easy access to funding
- Flexible terms
- Revolving agreements
Why Choose Pomegranate Financial Services?
At Pomegranate Financial Services, we offer expert advice for all your stock and trade finance needs. We are FCA regulated and we build relationships based on trust. We offer:
Reduced Risks
Pomegranate understands that global trade comes with risks, such as payment and supply risks, political instability and currency fluctuations. Through trade and stock finance deals, our brokers will reduce these risks by maintaining custody of the security assets until the end of the exchange.
Experts In Your Corner
Unlike banks, we will provide you with various lenders to choose from, tailoring them to your specific needs. Moreover, we have a wealth of experience and are flexible in our work, giving your SME the best experience possible.
Simplification
Our brokers here at Pomegranate will do all the hard work for you regulating trade and stock finance. We will handle the paperwork and simplify the tricky terminology into digestible information. We know that SMEs are much work, so we support our clients in any way possible.
Nationwide Reach
Through trade and stock finance, our clients can expand their supplier base, allowing for growth within the SME. Trade and stock finance will enable SMEs to develop in new and exciting ways whilst making beneficial global relationships.
Frequently Asked Questions
Get the answers to some of our most frequently asked questions for trade and stock finance here.
Where is Pomegranate Finance located?
Pomegranate is located in Manchester, Liverpool and London, and supplies exceptional financial services to businesses throughout the entire United Kingdom.
Why would someone use stock finance?
Stock finance is popular among product suppliers. The companies need a stocked warehouse to prepare for seasonal fluctuations and secure their reputation.
Will Pomegranate give me the best advantage?
Yes, our ethos here at Pomegranate Finance has always been, ‘Treat your client’s business with the same, commitment integrity and passion, as you would your own.’ Moreover, our brokers are independent and, therefore, will give you the best supplier options without bias towards a specific business.
Why should I use a brokerage firm and not a bank?
Pomegranate brokers are independent and have no ties to lenders, unlike banks. We choose the best options for our clients without consideration of the benefits gained by the lender. Moreover, a broker has a wealth of experience, which a manager at a bank will not have. This insight is vital in helping SMEs find the best trade and stock financial plans for them.
What are the common types of trade finance products?
A common type of trade finance product is a letter of credit (LC), which is contractual agreement between both the supplier and investor. Another type of finance product is a purchase order finance (PO), which is where the buyer covers procurement costs to the supplier. Lastly, businesses can use supply chain finance. The supplier will be supplied with advance payment to reduce risks of supply chain disruptions.
Discuss your trade and stock finance needs with our team of experts
If you want to discuss the options available to you give us a call, send us an email or use our contact form and one of our team will get back to you.