Trade finance in Derby
Trade finance funds the gap between paying an overseas supplier and being paid by your customer. A lender pays your supplier against agreed documents, and you repay once your buyer settles. CoreFi arranges it for Derby businesses, principally limited companies importing components or materials. Terms depend on the goods, the counterparties and the trading history.
Derby's economy runs on long, international supply chains. Rolls-Royce aerospace, the rail works at Litchurch Lane and the Toyota plant at Burnaston sit at the top of tiers of local suppliers, and those suppliers import castings, forgings, electronics and specialist materials on terms that rarely match when they get paid. That gap is what trade finance exists to close.
CoreFi is a commercial finance broker. We arrange trade finance for Derby businesses, principally limited companies, covering import finance, letters of credit and supply chain facilities. We package the case, approach lenders whose appetite fits the goods and the counterparties, and manage it to drawdown. We do not lend our own money.
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Tell us what you need
Tell us what you are importing, who from, who you sell to and on what terms. It costs nothing to start and there is no obligation.
- 2
We match you with suitable lenders
We assess your situation against our whole-of-market panel and identify the lenders whose criteria actually fit, rather than applying everywhere.
- 3
We package and submit
We prepare the case with the documents the lender will ask for and put it in front of the lenders most likely to fund it.
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Offer and drawdown
The lender issues terms and, on acceptance, releases the facility. We manage the process through to completion.
The cash flow problem in a Derby supply chain
A tier-two supplier winning a schedule from a primary manufacturer often has to fund the whole order before a penny arrives. You pay an overseas foundry 30 to 120 days before delivery, customs duty lands as a lump sum the moment the goods clear, and then your customer pays on their terms, which on aerospace and rail programmes can be 60 days or more from delivery.
That is a working capital cycle of three to six months on money you have already committed. Growing makes it worse, not better: a bigger schedule means a bigger outlay earlier. Trade finance funds that specific cycle rather than lending against the business at large.
What the facility actually looks like
In the common structure the lender pays your supplier directly against agreed documents, usually a purchase order plus shipping paperwork, and you repay when your customer settles. The goods themselves are the primary security, which is why a business with modest assets can still access a meaningful facility.
A letter of credit works similarly but is a guarantee of payment rather than an advance, and overseas suppliers often ask for one before releasing goods to a new UK buyer. Some lenders will roll trade finance into invoice finance so the facility covers the full cycle from paying the supplier to collecting from the customer, which for a Derby components supplier on repeat schedules is usually the structure that costs least.
What lenders look at
Trade finance underwriting is about the transaction more than the balance sheet. Lenders want goods that are identifiable and resaleable, counterparties they can verify, and a trading history that shows the cycle completing. Commodity components and materials are straightforward; bespoke parts with a single possible buyer are harder, because if your customer walks the lender is holding stock nobody else wants.
Sector appetite genuinely varies. Aerospace and rail supply chains carry long lead times and heavy certification requirements, and not every lender is comfortable underwriting a shipment that cannot be sold on without approvals. That is the main reason going direct to one lender gives a poor read on what is available.
Frequently asked questions
Do you cover all of Derby and Derbyshire?
Yes. We work with businesses across Derby and the wider county, from Pride Park and the Litchurch Lane corridor out to Burnaston, Ilkeston and the Amber Valley. The lenders we match you to will confirm whether they fund your specific sector and trade routes.
Do you lend the money yourselves?
No. CoreFi is a commercial finance broker, not a lender. We arrange the facility with lenders on our panel and are paid a commission by the lender on completion. If we think trade finance is the wrong product for your situation we will say so.
Do I need to be importing already?
Most lenders want to see a trading history with the supplier and the buyer, typically two or more years of accounts showing international trade. A first order to a brand new supplier is the hardest case to fund, because the lender is underwriting a relationship that has no track record.
Is trade finance cheaper than an unsecured loan?
For the purchase-to-payment cycle on repeat orders it usually is, because the facility is secured against the goods rather than against the business generally. An unsecured loan is better for costs outside that cycle. The two are not competing and some clients hold both.
Get matched with lenders for your Derby business
Tell us what your business needs and we will match you with lenders whose criteria fit. No obligation, no cost to start the conversation, and a straight answer about what is realistic for your situation.
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