Borrowing Base, Inventory Repurchase and Prepayment Finance are trade financing solutions that focus on the provision of working capital.
Each deal is tailor made based on the nature of your inventory and your trade terms between the counterparties along with the regulatory and legal requirements of the jurisdictions involved.
Facilities can be applied across the entire supply/value chain of your business or focused on financing specific inventory assets.
- Financing is matched to the underlying current assets (i.e. inventory and receivables) of the business which provides comfort that sufficient liquidity will be available throughout the operating cycle of a business. This is particularly important in industries that have seasonal funding requirements and/or can experience material input price movements within their operations.
- These solutions can provide a lower maintenance arrangement than traditional trade facilities if the reporting regime is based on existing management information systems and they can also be a cost effective financing solution relative to unsecured corporate debt.
For any queries on Borrowing Base, Inventory Repurchase and Prepayment Finance, please contact Andrew Boyce via email.