Intercreditor Agreements and DOP’s: The Factors Secret to Effective Collaboration

Intercreditor agreements with factors were always a significant obstacle in closing a purchase order financing deal. For starters, there is a good deal of unfamiliarity with purchase order financiers – even concern – that the purchase order funder might be taking over the senior lender’s collateral position or may refinance the client away. This, of […]

Purchase Order Finance Vs Supply Chain Financing: Critical takeaways for collaboration

The misconceptions surrounding supply chain finance, trade finance and purchase order finance have grown since the misuse of terms. Providers are quick to market products across a broad spectrum of “keywords”” to attract potential prospects, confusing business owners, often resulting in inconsistent and mismatched debt facilities. Even business development managers (BDM) struggle to understand explanations […]

Securing supplier payments: Payment guarantee or performance guarantee?

Negotiating supplier payments can become your biggest hurdle when sourcing goods from foreign suppliers. Suppliers need the confidence that you’ll make payment or have the financial backing to complete. You want guarantees to ensure that your supplier performs before releasing funds. Dealing with new suppliers can become your largest risk impacting your operation right when […]

What is Structured Trade Finance and how to identify a client?

Structured trade finance is used primarily in the commodity and inventory sector by traders, producers, and processors. Structured trade products are mainly warehouse financing, working capital financing, and pre-export/import financing. Some lenders extend lending and finance for the conversion of raw materials into products in addition to payment guarantees to suppliers. Historically, $8 trillion worth […]

Top 3 Finance Broker Frustrations When Seeking Trade Finance Approvals

In a recent survey of Stak’s top twenty-five (25) channel partners, we uncovered the pitfalls, frustrations, and tactics used when sourcing trade financing. When asked what frustrates them most about the specialist commercial finance market right now, over half (57%) of those surveyed named lenders changing their mind after issuing offers as their greatest disappointment. […]

Private equity firms bridging capital gaps to fuel their portfolio companies

Multi-layered capital structures can often be outstripped when a portfolio company is presented with large sales opportunities. Equity firms can add tremendous value to their investment if they are able to source funding for clients to execute and deliver new orders. – Better still, source funding without diluting any further equity or pledging further security […]

Trade finance for startups: Using the lenders money to profit

Image credit: Michele Marconi Arguably the hardest time to source working capital is in the first two years of trading. Growing a new business exhausts profits with wages, advertising and fixed costs. Compounding the issue is the need to show profitability if you’re seeking to raise capital from banks to expand. Traditional lenders are more concerned […]