Evidence the transaction
The business presents supplier terms, buyer orders, product margins, logistics and the expected cash-conversion cycle.
Trade, purchase-order and stock finance guide
Trade, purchase-order and stock finance
Trade, purchase-order and stock finance can bridge the period between paying a supplier and receiving payment from a customer. Facilities are often linked to identifiable goods, orders or transaction cycles rather than general-purpose borrowing.
Often considered for
- Paying suppliers against confirmed customer orders
- Importing goods or funding manufacturing cycles
- Purchasing stock for seasonal or contracted demand
- Taking on larger orders without exhausting working capital
The structure
How trade, purchase-order and stock finance can work
The exact process, eligibility rules and legal structure vary by provider.
Fund the supplier or goods
Subject to approval, the provider finances eligible costs, sometimes paying the supplier directly.
Complete and repay
Goods are delivered and the facility is repaid from the customer receipt, sale of stock or a linked invoice-finance facility.
Lender assessment
What a provider may consider
- Strength and reliability of the end buyer
- Supplier credentials and contractual terms
- Gross margin and headroom after all transaction costs
- Delivery, quality, currency and logistics risks
- How repayment is controlled and evidenced
Prepare the evidence
Information that may support the request
- Confirmed purchase orders or customer contracts
- Supplier quotations, pro-forma invoices and payment terms
- Product margin and transaction cash-flow analysis
- Shipping, insurance and fulfilment plan
- Historic experience completing similar orders
Compare carefully
Points to understand before proceeding
- Confirm exactly which costs, suppliers, countries and goods are eligible.
- Allow for finance, inspection, shipping, currency and insurance costs when testing margin.
- Understand what happens if the buyer cancels, rejects or delays the order.
- Stock finance can be difficult where goods are perishable, specialised or have an uncertain resale market.
Build the funding case
Present the need, evidence and repayment plan together
Fundry helps businesses organise a structured request for potentially relevant lenders to assess.
This guide provides general information only and is not financial advice or a recommendation. Product structures, eligibility, costs and terms vary by provider and remain subject to assessment. Review any offer carefully and seek independent advice where appropriate.