An International trade loan is a usually a short term loan to cover the time between when the goods come into the country until they are sold on. Say the goods are being modified or amended for an international market before being exported elsewhere for final sale, then an international trade loan would provide that bridging finance.

International trade loans are usually short term loans specified in days.

Ideal for:
Businesses who are importing goods or parts to be modified and on sold to a confirmed buyer but doesn't have the cash flow to fund the entire process. Can also be used on occasions where the business needs time to sell on imported stock.

Security requirements:
Usually the goods themselves will act as security but you may also be required to provide a personal guarantee

Advantages:

• You have access to working capital to complete the necessary sales and modification to sell your finished product successfully
• Short term loan means you're not locked into long agreements that will eat into your profit.

Disadvantages:

• There will be fees involved and you'll need to provide security to you better have a buyer lined up or it can get expensive.
• There will be time pressures exerted by the lender.

Key UK providers:

• Some High Street Banks
• Specialist Lenders