Trade Finance Brokerage

Financing for trade across UK and international supply chains

/ FCA Registered

Reference: 729876

Fund the gap between paying suppliers and getting paid

Trade comes with a timing problem. You often have to pay a supplier long before your own customer pays you, and that cash flow gap can tie up more working capital than a growing business can spare.

Mill Wood Finance helps UK businesses access trade finance that covers this gap, so you can commit to orders without draining your cash reserves. By working with a panel of specialist lenders, we structure financing for trade that lets you pay suppliers on time and hold the stock your customers expect.

What is trade finance?

Trade finance is funding that supports the purchase and sale of goods. It bridges the gap between paying for goods and being paid for them, which is where most of the cash flow pressure in a trading business builds up. The goods might come from a supplier in the next county or from a manufacturer on the other side of the world.

Rather than a single product, trade finance is a group of facilities that can be used on their own or together. A lender might pay your supplier directly against a confirmed order, or provide a guarantee that gives an overseas supplier the confidence to ship before payment reaches them. The facilities you use depend on what you trade and how your payment terms are set.

Because approval often rests on the strength of the underlying order and the creditworthiness of your customer or supplier, trade finance can suit businesses that would find a conventional loan harder to secure.

Types of trade finance

Trade finance covers several facilities. Most businesses use one or two of them, matched to the way they trade:

Import finance: For businesses buying goods from overseas suppliers. It covers the cost of paying a supplier before your own customers have paid you. You can read more on our import finance page.
Export finance: For businesses selling to overseas buyers. It releases cash while you wait on international payment terms, which can stretch to 90 days or longer. Find out more on our export finance page.
Letters of credit: A bank-backed guarantee that a supplier will be paid once agreed shipping documents are presented. Letters of credit give overseas suppliers the confidence to ship and reduce risk on both sides of a transaction.
Purchase order finance: Funding released against a confirmed purchase order, so you can take on an order that is larger than your current cash flow would otherwise allow.
Supply chain finance: An arrangement where a lender pays your suppliers early while giving you longer to repay, keeping goods moving without tying up your working capital.
Invoice finance: Cash advances against invoices you have already raised. It is often run alongside import or export finance so funding covers the full cycle, from paying your supplier through to collecting from your customer.

Financing for trade at home and abroad

Trade finance is often assumed to be only for international trade, but it applies just as much to domestic supply chains. If you buy stock from a UK supplier and then wait weeks for your own customers to settle, the same cash flow gap applies and the same facilities can cover it.

For businesses trading across borders there is an added layer to manage, from the cross-border risk to the documentation that moving goods internationally requires. This is where a specialist trade finance broker earns its place.

Trade finance for different trading situations

Trade finance is rarely a fixed product bought off the shelf. Which facilities suit you depends on the shape of your trade and how your goods move. These are the situations we most often arrange it for and how we help in each.

Businesses that both import and export

When you buy from overseas suppliers and sell to overseas customers, cash can be tied up at both ends of the same cycle. We coordinate import and export facilities so the whole cycle is funded rather than one side of it, and because we place across a panel of lenders we can line up funding on both sides that works together, rather than leaving you to stitch two separate arrangements together yourself. Where it helps, we can look at how import finance and export finance sit alongside each other for your business.

Trading with a supplier or customer for the first time

When neither side has a track record with the other, payment becomes the sticking point. Your supplier wants certainty before they ship, and you do not want to pay for goods you have not seen. We arrange the instrument that bridges that, usually a letter of credit or a guarantee, and find lenders comfortable with the countries and counterparties involved, so a promising new relationship is not held back by the question of who pays first.

Moving goods through a longer supply chain

Where goods pass through several stages before they reach your customer, such as processing or assembly, the gaps between payments multiply and one late link can stall the rest. We structure supply chain finance around the way your goods actually move, so suppliers are paid on time and the chain keeps running, and we match you to lenders who understand your particular supply route rather than applying a generic one.

If your bank cannot help

If your bank has told you it cannot support your trade requirements, or you are finding that standard lending does not fit the way you trade, you are not on your own. Trade finance is a specialist area, and it sits outside the products most high street lenders are set up to offer.

An independent broker approaches it differently. When you work with Mill Wood Finance, we:

Learn how your trade cycle works, including your supplier payment terms and your customer collection cycles
Structure a facility that fits the way your business actually trades
Approach the right lenders from our panel to secure competitive terms
Prepare your application so lenders understand it clearly and funds are not held up by avoidable delays

You may be suitable for trade finance if...

You have secured an order but need to pay a supplier before your customer pays you
Your bank has declined to support your trade requirements or cannot move quickly enough
You are taking on larger orders than your current cash flow comfortably allows
You import goods and need to pay overseas suppliers ahead of shipment
You export goods and are waiting on payment terms that run to 90 days or beyond
Standard lending products do not fit the way your business trades

Key considerations before applying for trade finance

Before you apply, it helps to understand what lenders will usually assess:

Your trading history and financial performance
The creditworthiness of your customers and suppliers
The strength of the underlying orders or contracts
Your margins and order volumes
Payment terms on both sides of the transaction
Shipping and delivery timelines where goods cross borders

As part of our service, Mill Wood Finance help present this information to lenders clearly, so your application is understood the way you intend it.

How is it structured?

Facilities are usually built around your trade cycle rather than a fixed monthly repayment. Funding is often tied to the value of your purchase orders or invoices, and repayment terms commonly run from 30 to 120 days, matching the time it takes to sell goods on and collect payment.

Due to the differentiation of trade cycles, the facility is set up around your specific timings rather than a standard template.

Why work with a trade finance broker?

Trade finance is a specialist area of commercial lending. Not every lender offers it, and those who do vary widely in their appetite for risk and international exposure.

Working with a broker such as Mill Wood Finance gives you access to specialist trade finance lenders who understand how trading businesses operate. We identify which facilities suit your situation and handle the documentation involved. The finance is structured around your trade cycle so that payments line up with how your business runs.

We connect UK importers and exporters with specialist lenders who understand how trade works, at home and overseas.

Who are Mill Wood Finance

Since 1999 we have been arranging financing for trade on behalf of UK businesses that buy and sell goods at home and overseas. We work with importers and exporters whose funding needs sit outside what their bank is willing or able to provide.

Our Ethos

We take the time to understand how your trade cycle works before we recommend anything. Our advice is shaped by what your business needs, not by what suits any single lender.

Our Services

We work independently of the lenders we place business with, and we manage the process from first enquiry through to completion. Our role is to match you with the right facility and to stay with the case until the funding is in place.

FAQs

What is trade finance and how does it work?

Trade finance is funding that supports the buying and selling of goods. A lender pays your supplier or guarantees that payment, which lets goods be produced and shipped, and the facility is settled once your customer pays you. It is structured around your trade cycle so the timing of funding matches how your business trades.

Is trade finance only for international trade?

No. Trade finance is widely used for international trade, but it works just as well for domestic supply chains. If you buy stock from a UK supplier and wait for your own customers to pay, trade finance can cover that gap.

What is the difference between trade finance and import or export finance?

Trade finance is the broad term for funding that supports buying and selling goods. Import finance is the part that covers buying from overseas suppliers, and export finance covers selling to overseas buyers. Both sit under trade finance and are often used together by businesses that both import and export.

How much can I borrow with trade finance?

Facility sizes vary considerably and are usually linked to the value of your orders or invoices rather than a fixed limit. Because funding is tied to your trade cycle, the amount available tends to grow as your trading volumes grow.

Is Mill Wood Finance regulated?

Yes. Mill Wood Finance Limited is authorised and regulated by the Financial Conduct Authority for its credit broking activities. Our Firm Reference Number is 729876 and can be verified on the FCA register. We have been operating since 1999.

Speak to our experienced brokerage for a trade finance solution

Whether you are arranging financing for trade for the first time or you are an established importer or exporter looking to improve your current facilities, we are happy to talk through your situation. You can book a meeting using the calendar below, visit our Brighton office, call us on 01273 523690 or email info@millwoodfinance.com.