Trade finance 

Get access to additional working capital and help your business grow with trade finance. Trade finance funds the gap between the purchase and sale of a product or service. It typically offers flexible, cost-effective terms and can be used to complement existing banking relationships.

What is trade finance based on?

Trade finance can relate to transactional business or your entire customer base, for both open account and other secure methods of payment such as Letters of Credit. 

Get access to an extra line of finance

More stringent lending criteria are making it increasingly difficult to access lines of finance. Credit insurance can be used to provide security to support existing working capital or facilitate additional banking lines. Insurance-backed trade finance means the insurer’s rating can be used for enhanced terms and conditions from the bank, as it can satisfy its Basel II requirements.

Accelerate your cash flow

Trade finance accelerates your cash flow by releasing funds at date of delivery rather than waiting for payment from your customers. This can provide additional working capital without encroaching on your existing banking lines.

Flexible and low maintenance finance

Trade finance is often easy to implement and involves limited administration.

Access to additional credit

Buyer credit facilities can be structured to finance your supplier purchases. This allows you to align sales revenue with your own purchase obligations.

Last updated 12 March 2009

Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only. FP5565