Revolving
Purchase Facility
Allows the purchase of finished goods (imported
or UK sourced) by immediate supplier payment repayable by
90 day bills of exchange. The facility is usually unsecured
and does not normally affect other lenders security.
Revolving
purchase lines of credit are provided by one of the UK's
leading providers of Trade Finance facilities.
The product is available to owner managed
businesses registered in the UK.
The
line of credit extended depends on the financial position
of the business, which is agreed after assessing the accounts
of the business. Typically lines offered would be between
£20k and £150k.
Once
the line is agreed the client may approach and request that
a suppliers invoice is paid or an LC is issued on their
behalf.
The
client pays their service fee at that time (depending on
the size of the line usually 5% to 6%) and signs a 90 day
bill of exchange & usually a trust receipt.
We will
pay the supplier or issue the LC and collect the money back
from the client 90 days later.
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KEY FEATURES |
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Facility is usually unsecured with no charges or debentures
required therefore should not
impact on borrowings from other lenders. |
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The client is free to move and sell the goods purchased
as required. |
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Once the advance has been repaid at the end of the
90 day period a new transaction can
be undertaken…hence the term revolving purchase
facility. |
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Facilities can be made available to Limited companies,
sole traders or partnerships. |
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Goods purchased should be finished goods ready for
re-sale which makes them in effect, self liquidating
within a 90 day cycle. |
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We usually seek directors guarantees for 15% of the
line (with a minimum of £5k). |
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Once the facility is in place transactions can be
processed usually within a few days,
sometimes urgent requests can be handled the same day. |
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Revolving
purchase finance
