How does trade finance work?
How does it work?
Step 1: You receive an order from your customer
Step 2: You source the goods from your supplier (who is usually overseas) and they invoice you
Step 3: The financier verifies the order with your customer and arranges payment to your supplier.
Step 4: Your supplier ships the goods to you.
Step 5: You supply the goods to your customer, raise an invoice and copy it to the financier.
Step 6: The financier retains the equivalent value of the payment already made to the supplier and the remainder is sent to you.
Step 7: Once the customer pays, the financier then pays the balance to you.
