Financing the Importer

Structuring Payables Finance
  • Stephen A. JonesEmail author


A client will often require financial support to pay a supplier for the purchase of goods. Whilst payables finance provides a solution to fund payment to specific trade creditors when traditional credit risk assessment and conventional lending products such as an overdraft cannot accommodate the required facility amount, the risks need to be carefully evaluated and an appropriate financing structure implemented which mitigates risk to an acceptable level.

In this chapter, the key aspects of risk assessment are considered, and a range of solutions described to fund payment to the supplier for goods which are to be delivered to an end-buyer.


Credit gap Deposit finance Documentary collection Import letter of credit Payables finance Payment to the supplier Supplier status Trade loan 

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.AXS Trade Finance Ltd.Solihull, West MidlandsUK

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