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For more information contact:
Merchant Trade Finance Ltd
Walton Lodge, Walton Street, Aylesbury, Buckinghamshire HP21 7QY
Registered in England No. 3609051
Albany Court Yard, Piccadilly,
London W1J 0LR.
Tel: 01296 436661
Fax: 01296 338951
Email: mtf@raphael.co.uk |
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Allows the purchase of finished goods (imported or UK sourced) by immediate supplier payment repayable by 90 day bills of exchange. The facility is usually covered by credit insurance on the debtor/client.
The product is available to owner managed businesses registered in the UK. The line of credit extended depends on the financial position of the business, which is agreed by "MTF" after assessing the accounts of the business. Typically lines offered would be between £20k and £150k.
Once the line is agreed the client may approach "MTF" and request that a suppliers invoice is paid or an LC is issued on their behalf.
The client pays "MTF" their service fee at that time (depending on the size of the line usually 5% to 6%) and signs a 90 day bill of exchange and usually a trust receipt. "MTF" will pay the supplier or issue the LC and collect the money back from the client 90 days later.
| Key Features |
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Facility usually secured with charges or debentures |
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Client is free to move and sell the goods purchased as required. |
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Once the advance has been repaid at the end of the 90 day period a new transaction can be undertaken, hence the term revolving purchase facility. |
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Facilities can be made available to Limited companies, sole traders or partnerships. |
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Goods purchased should be finished goods ready for re-sale which makes them in effect, self liquidating within a 90 day cycle. |
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We usually seek directors guarantees |
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Once the facility is in place transactions can be processed usually within a few days, sometimes urgent requests can be handled the same day. |
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