What is the difference between a letter of credit and a trust receipt?

A letter of credit is a bank promise to your overseas supplier that they will be paid once shipment documents are presented. A trust receipt finances the import bill so you can collect and sell the goods, then repay after the trade cycle.

What is invoice financing?

Invoice financing means borrowing against supplier or customer invoices so paper invoices become usable cash while you wait to be paid.

How long is trade financing for, and what documents do I need?

Trade facilities are short term, often around 30 to 180 days, matched to your trade cycle. You will usually need purchase orders, commercial invoices, packing lists, and shipping documents such as a bill of lading. Kenny tells you exactly what each facility needs.

Is approval guaranteed?

No. It depends on your trade documents, debtor quality, and lender criteria.

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Trade Financing

Invoice financing, letters of credit, and trust receipt options from about S$200,000.

Does this sound like you?

You pay before you get paid

Suppliers want paying on shipment, but your customers settle 30 to 90 days later, and the gap squeezes cash flow.

A big order you cannot prefund

A large purchase order is on the table, but tying up cash to fulfil it would stall everything else.

Import bills land before sales

Goods arrive and need clearing and paying for well before you have sold them on to buyers.

How it works, step by step

1
Tell Kenny about your trade cycle
Who you buy from, who you sell to, and the timing.
2
Review suppliers and documents
Kenny looks at your buyers, suppliers, and paperwork.
3
Match the right facility
Invoice financing, letter of credit, or trust receipt.
4
Indicative limits and terms
A clear view of the facility before you apply.
5
Supported to drawdown
Help through approval and the first transaction.

How a trade cycle gets financed

An illustrative import cycle. Your facility is matched to how your business actually trades.

1
You order goods
Purchase order to your supplier
2
The bank steps in
An LC or trust receipt settles the bill
3
Goods arrive and sell
You clear stock and deliver to buyers
4
You repay
After your customers pay you

Illustrative. Facilities, tenor (often around 30 to 180 days), and limits depend on your documents, debtor quality, and lender criteria.

From S$200,000

typical facility starting point

30 to 180 days

typical trade financing tenor

Import and export

covers both sides of the cycle

You may be a fit if

You import, export, distribute, or manufacture with overseas suppliers
There is a timing gap between paying suppliers and getting paid
You can show trade documents such as purchase orders and invoices
Your buyers or suppliers are established and verifiable

Trade runs on timing. You often have to pay your supplier on shipment, yet your own customers do not settle for 30, 60, or 90 days. Trade financing exists to bridge that gap so a cash-flow squeeze never costs you the next shipment or the next deal.

What trade financing covers

When a business buys before it sells, or sells before it gets paid, the bank can step in to fund the trade cycle. Kenny helps Singapore traders, distributors, manufacturers, and import and export businesses review bank trade facilities from about S$200,000 and above, matched to how they actually trade.

The main tools, in plain English

Invoice financing: borrow against supplier or customer invoices so paper invoices become usable cash while you wait to be paid.
Letter of credit: a bank promise to your overseas supplier that payment will be made once the agreed shipping documents are presented.
Trust receipt: short-term import financing where the bank settles the import bill and releases the documents so you can collect the goods, sell them, then repay after the trade cycle.

A worked import example

A Singapore seafood importer buys S$150,000 of frozen seafood from Vietnam. The shipment arrives, but paying the full amount before selling to restaurants would drain the business. The bank grants a trust receipt, releases the documents, the importer collects and sells the stock, then repays the bank once customers have paid.

When it fits

Trade financing suits trading companies, distributors, and manufacturers with overseas suppliers and regular import or export payment cycles. Facilities are short term, often around 30 to 180 days, sized to your trade cycle.

What speeds it up

Have your purchase orders, commercial invoices, packing lists, and shipping documents such as the bill of lading ready. Kenny will tell you exactly what each facility needs and which one fits your cycle best.

Illustrative guidance only. Subject to eligibility, valuation, lender criteria, and approval. No guaranteed approval.

Questions owners usually ask

What working with Kenny looks like

A free, no-obligation review of where you stand
Straight answers on what fits and what does not
Illustrative numbers before any application, never vague promises
One point of contact from the first chat through to approval
No pressure, and no cost to explore your options