Trade and Export Finance
At TAEFL, we are passionate about supporting SME’s, and if you have a confirmed order from a credit worthy buyer we are confident we can provide the funding.
To give you the best possible chance of us agreeing to your request for finance, I have listed below the areas we look at when coming to a decision.
Background In simple terms:
• What exactly does the business do?
• How long have you been doing it?
• We will require the basic details of how long you have been trading
• Your trading address
• Main contact details
• Just as important is a profile of the directors’/business managers. Ideally, we like to see that you have experience in the marketplace in which you are operating and what the individual’s main responsibilities are, in the business.
• We always take unsupported personal guarantees of the directors when we lend, so we also require an individual statement of assets, liabilities, income and expenditure completed by each director.
We need to know that if the Guarantee(s) was ever called upon, the individuals have the capability to repay over a reasonable time.
Purpose & Amount It is important that you have planned carefully and know what you want, and just as important, how that will enable your business to grow.
This will include a timeframe for repayment, and of course, where monies will come from to meet your lending obligation. Other Borrowing We are responsible funders, tailoring a funding solution to meet your individual requirements.
To do this, and to be comfortable that you have the ability to repay, we will require details of any existing borrowing facility you have.
This will include: -
• The name of the lender
• The type of facility
• The amount
• The security, if any, provided to the lender
Any issues with existing facilities will have a knock- on effect in terms of your overall financial situation and we need to be comfortable with all aspects.
Now, we are getting to the important part of how you can comfort us with the trade deal you are contemplating.
Talk us through not only the specific transaction you are looking to fund, but also how you have successfully managed your trading performance to date.
Top 5 Suppliers & Top 5 Customers
We need to be happy that you have a reliable supplier who can meet quality control and timescales and also that your end buyer is creditworthy.
Our security rests originally with a lien over the goods initially purchased and when delivered, ultimately with the debtor who will be making a payment once invoiced.
They will need to be credit checked for the total amount of the invoice.
Financial Information – Past & Future
It is important to us that we can clearly see where repayment is coming from.
The most important aspects are: -
• To have an understanding of how the business has operated previously
• How the transaction/s we are funding will affect the business going forward
• Previous years financial statements together with some projections for the next 12 months as a minimum are ideal.
Due Diligence Money is a very valuable commodity and you would expect us to carry out our own due diligence.
If the director, partners or proprietors of the business have been associated with a failed business in the past, then we need to know.
This is not necessarily a barrier to us doing business, but we require a full discussion around what happened.
Other information we need to complete our initial enquiries are: -
• Aged debtor & creditor listings
• Details of current position with VAT/PAYE
• Last 3 months’ bank accounts
• Copy of the confirmed order/s
• Examples of your documentation (sales and supplier invoices, delivery notes etc.)
We know how important it is for SME’s to get a prompt response to their funding request, especially if there is a profitable order resting on it.
If you are able to present your request in the format outlined, we commit to providing an answer, in principle, within 48 hours.
Any questions, please contact Mark or Phil on 0121 794 0280.