Trade finance

Payment in advance

Common in international trade where the seller needs a down payment before manufacturing. QED structures the advance so you can place the order without starving working capital.

Apply for Payment in advanceLearn moreOn qedfinance.com
Range
By deposit
Term
To delivery
Family
trade
Search
Full market, one file

At a glance

  • Supplier deposits
  • Pre-manufacture
  • Protects working capital
  • Import-friendly

How it works

  1. 1Common in international trade where the seller needs a deposit before manufacture.
  2. 2QED structures an advance so you can place the order without draining working capital.
  3. 3The rest of the transaction can then sit on documents, an LC, or import finance.

Who it’s for

  • Importers whose suppliers insist on a down payment
  • Buyers who cannot spare the deposit from cash flow

Good to know

You are still taking supplier-performance risk on the deposit. Credit insurance and the right supplier checks matter.

One application with QED searches the full market. That saves you running the same file around several lenders, and it avoids multiple credit searches on the business and directors. A hard search is only placed when you proceed with a chosen lender.

Documents QED will ask for

Same list as the attach-files section on the website application. Tick what you have when you apply; email the rest.

  • Last published accounts (full accounts, not abbreviated)
  • Latest management accounts if year-end is stale
  • Last 3 months’ business bank statements
  • Pro-forma invoice
  • Purchase order
  • Commercial invoice
  • Contract of sale
  • Transport document / bill of lading (if shipped)
  • Buyer and supplier names and addresses

FAQ

Drawn from qedfinance.com and the way the UK market actually underwrites these facilities.

Is this the same as import finance?

It is a piece of it. Payment-in-advance specifically funds the deposit; import finance more often funds the whole shipment for up to 180 days.

Why would a seller insist on this?

Because they need a down payment before they manufacture. It is common in international trade. QED structures the advance so you can place the order without draining working capital.

What risk remains?

Supplier-performance risk on the deposit. Credit insurance and supplier checks still matter. The rest of the transaction can then sit on documents, an LC, or import finance.

Why not just pay by telegraphic transfer?

A plain TT is fast but puts all risk on the buyer — you may pay for goods that never ship or fail quality. An open account does the opposite and loads the exporter. Trade finance is the middle path.

Can products be combined?

Yes. Import finance is often paired with a letter of credit and then repaid from invoice finance once goods are sold on.

Ready to discuss this facility?

Start a short application and QED will help you compare the available market.

Start an application

QED is a broker, not a lender. A low credit score can limit options with some houses; a search with us does not place a hard search on the business or directors until you proceed with a chosen lender.