When a large order arrives, your business may need to pay suppliers, buy materials, cover freight or hold inventory weeks before the customer pays.
Trade and stock finance can help fund qualifying supplier payments, confirmed purchase orders, imports and resaleable inventory. The facility is normally structured around the transaction, the goods and a clear route to repayment.
TMS Finance reviews the order, supplier, buyer, margin, trading history and cash-flow cycle before approaching suitable providers from our panel.
Funding may be available for supplier invoices, materials, imports, freight, duty and stock purchases where the transaction and repayment route are clear.
Submitting an enquiry does not commit you to proceed. Finance is subject to status, affordability, provider criteria and approval. Security or personal guarantees may be required.
Fund the Gap Between Paying Suppliers and Getting Paid
Facilities may support a specific transaction, a programme of purchases or stock held for resale. The right structure depends on how the goods are bought, sold and repaid.
Funding may support:
Providers normally want to understand the complete transaction: who the supplier is, what is being bought, who will purchase the goods, the expected margin, how long the cycle lasts and how the facility will be repaid. Confirmed purchase orders and back-to-back transactions often fit trade finance. Stock finance may suit established businesses holding resaleable inventory with proven demand. If neither fits, a business loan or revolving credit facility may be more suitable. TMS Finance reviews the complete requirement rather than forcing every enquiry into one product.
Three Common Funding Routes
Funding is used to pay an approved supplier for goods, components or materials linked to a confirmed transaction. The provider may pay the supplier directly and be repaid when the buyer pays. Suitability depends on the goods, parties, margin and repayment route.
Funding can support stock purchases or release working capital against eligible inventory held for resale. Providers may consider the stock type, turnover, value, location, ageing and how quickly it can be sold. Advance levels and controls vary.
A confirmed customer order may support funding for the supplier or production costs needed to fulfil it. Providers assess the buyer, supplier, contract terms, delivery process, margin and payment timetable. Not every purchase order is financeable.
TMS Finance reviews the complete trading cycle, tests provider fit before submission, structures the request around the order and repayment route, approaches appropriate providers from our selected panel, explains the costs, security and controls, and stays involved from enquiry through completion.
A clear process from order or stock requirement to supplier payment.
1
Provide the customer order or sales evidence, supplier quotation, goods description, payment terms, expected margin, delivery timetable and the amount required. For stock finance, include a current stock report and valuation.
2
We review the supplier, buyer, goods, margin, trading history, cash-flow cycle and intended repayment route. We then identify suitable structures and approach appropriate finance providers.
3
We explain the facility amount, fees, security, controls and repayment mechanics. If you proceed and the provider approves the transaction, the supplier can be paid and the goods purchased or produced.
Requirements vary by provider, but typically include:
Here are some of the main questions that we get asked.
Trade finance normally funds a specific supplier payment or transaction with a clear buyer and repayment route. Stock finance supports eligible inventory held for resale and is assessed against stock quality, value, turnover and demand.
Confirmed orders can strengthen a trade finance or purchase-order finance request. Some stock finance providers may consider established businesses without a specific order where there is proven demand, strong stock controls and a clear repayment plan.
Some providers can fund approved overseas suppliers and imported goods. They will assess the supplier, country, currency, shipping terms, delivery route, goods and payment method before deciding whether the transaction is acceptable.
This depends on the agreement. Hire purchase normally leads to ownership once all required payments have been made. Leasing agreements have different end-of-term arrangements that should be checked before proceeding.
The amount depends on the transaction value, margin, buyer and supplier strength, stock quality, trading history, existing borrowing and the provider’s assessment. It should not be estimated from turnover alone.
Security requirements vary. Providers may take security over goods, stock, receivables or company assets and may request personal guarantees. The exact position must be explained before any agreement is signed.
A clear transaction with complete documents can be assessed more quickly. Delays commonly arise when purchase orders, supplier invoices, management information, stock reports or evidence of the repayment route are missing.
Tell us what you need to buy, the supplier payment dates, buyer or sales evidence, expected margin and when the facility should be repaid. TMS Finance will review the requirement and identify realistic options.
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