How the Process of Funding an Invoice actually works with TFP

Trade Finance Providers - A summary is provided here of the steps involved for your general information . It is advisable that at TFP representative visit your premises to explain the steps involved in greater detail

• Call TFP and speak with our dedicated sales team . In the first discussion you will mention the size of the facility / credit line you need and the frequency of the facility ( i.e how many times per year you will require the facility ) as well as some brief details of your business .
• TFP will then require conduct a preliminary review of your companies financial position , without the need to fill in numerous forms . In order to conduct this review TFP will request the following – last 2 years accountant prepared profit and loss and balance sheet plus the last 6 months management accounts including a profit and loss and balance sheet and accounts receivable aging .
• After receiving this information listed in point 2 our credit team will assess the details for 2 to 3 days . If there is potential to assist you – then we will forward you our standard application form that would be signed and returned to us .
• With the formal application form and details in hand – we will be able to start the credit approval process which will include a Baycorp report and credit review . The decision to approve the facility should be received in 7 – 10 working days .
• After the approval is received , the loan documents will be generated , which will be signed by the borrower .
• Within 48 hours of receipt of the signed documents , the facility will be ready for drawdown by the client to pay suppliers .
• The client submits to TFP the supplier invoice , which includes the full details of the suppliers bank account , plus the bill of lading .
• The client completes the wire transfer authorization form for this invoice confirming all the details where the funds are to be sent as a control to prevent incorrect amounts being sent out . Each time there is a drawdown a client authorization is required .
• On receipt of the Authorisation mentioned in point 8) TFP end the funds by Telegraphic transfer to the suppliers account .
• At the conclusion of the 120 day loan period TFP submits its request for payment of the loan to the clients bank . The form used for this is called a Bill of Exchange The terms of the facility require that the clients bank be contacted for payment and not a manual system , where the borrower has to personally arrange loan repayment on the due date .
• Once the loan is repaid on the due date , the full loan facility is again available to be drawn down again . In other words this is an “ evergreen facility “