Trade Finance is always available to support our client’s needs. FinLender has its presence in global market with strong relationship in international banking system especially for trade finance, so we offer innovative and customized funding solutions for import and exports worldwide.
A trade finance mechanism whereby an exporter sells its export receivables (bills of exchange or promissory notes, or simply issued invoices, which the exporter is selling on an open account basis) at a discount. The company purchasing the receivables is called a factor. Factors are normally specialized financial services companies, but many are owned by banks. Normally, after the factor has purchased a receivable, the importer or buyer pays the factor directly. Some factors actually issue the invoices to buyers and, in effect, operate the exporter’s sale ledgers. Some factors operate on a non-recourse basis i.e., they assume the risk of non-payment. Less frequently, the factor will take recourse to the exporter for all or part of the sums involved in the event of non-payment or delayed payment by the buyer.
In this type of product up to 75 to 80 % of the value of the invoice will be consider for factoring. Interest will be charged from the date of advance to the date of collections. Factor does not participate in the credit sanction process. In India, factoring is done with recourse.
Non Recourse Factoring
In this product credit risk lies with the factors. Factor purchases Receivables on the condition that the Factor has no recourse to the Client, if the debt turns out to be non-recoverable. Factor participates in credit sanction process and approves credit limit given by the Client to the Customer. This type of transactions happens only in overseas market.
FinLender is one of the leading providers of bespoke trade finance solutions to its clients, enabling them to maximize their global business opportunities.
Customized trade solutions structured by FinLender and our associate team of trade specialists helps clients in optimizing their trade lines all the while, resulting in increased competitiveness, optimized working capital and reduced credit risk. We have strategic partnerships with the leading global banks, trade funds and large non-bank investors to provide clients with the required comprehensive solutions.
We have the expertise to advise our clients with the best possible solutions to remove their liquidity gap through various structures. Our aim is to enable our clients to trade goods and services under best possible terms.
Our core competencies include:
- Receivable Financing.
- Vendor Financing.
- End-to-end Financing.
- Supply Chain Management.
- Pre-Post Finance.
- Advance Payment Guarantee.
- LC/BG Discounting.
- Bill Discounting.
- Unsecured Business Loan (Without Collateral)
FinLender provides corporate with the financing they need for expanding business around the world by identifying their requirements and matching the right finance and risk solution provider to their diversified business needs. With our deep-rooted knowledge of international and domestic markets, strong ties with international as well as local banks as well as holistic view of international trades, we are able to bring forth unique financing partnerships at compelling prices.
Structured Trade Finance with this exemplary track record of creating and executing structures based around varied trade flows and financial requirements, FinLender brings forth unique value-added advisory solutions to its clientele across the world. Its highly skilled team hailing from a wide background of trading companies and banks, puts together strategies and solutions to help clients optimize financial lines to further their traded and increase flows into newer geographies with the help of our network of lenders.
Some of the structures that we can bring to the platform are: –
- Back-to-Back and Front to Back Trade Lines
- Stock Financing
- 3rdPort Financing
- Clean Buyers Credit
- Single Debtor Receivables Structures
- Inventory Monetization
- Repo Financing
- Receivable Funding
- Asset backed Lending
Through our solutions, we enable our clients to maximize the value of their working capital in building unique advantages for their company by harnessing industry developments.