Trade loans

Trade finance, also known as import finance, provides funding for goods as they are transported from the seller to the buyer. It provides you with the ability to pay your supplier for the purchase of finished goods (often from overseas).

Trade loans are offered by banks and other financial institutions. Applications are made to the business’s bank or other finance provider, either in person, by telephone or online.

The business should have a clear idea of the amount it needs to borrow and the likely timeframe of the transactions that the trade loan is intended to finance. Typically finance would be required covering the period from placement of the order, through to eventual onward sale of the goods.

The finance provider will consider various factors in agreeing an bank loan, such as the length and history of the business relationship as well as the turnover, profitability and asset base of the company. A good relationship between the business and the finance provider is important and can be a factor in determining the terms of the loan.

It is important that the business meets it obligations under the terms of the loan and keeps to the agreed repayment schedule. Failure to do so will adversely affect the credit rating of a business.


In addition to trade loans, there are many other sources of finance to explore. From short term loans to commercial mortgages, Barclays can help businesses find the right solution to support growth. Follow the link below.