Europe is a major hub of international trade. The largest export is oil. However, when most people think of European exports, they aren’t thinking about fuels, plastics, and technical equipment. European countries like Italy, France, and England are known for other industries like fashion, food, and liquor.
Like any other area with high demand products, cash is king if you want to trade successfully. When trading with European countries, a reputable trade finance company can provide the liquidity needed to complete successful trades. Non-recourse accounts receivable factoring and purchase order financing are two tools that top trading companies utilize to finance their trade transactions.
In this blog we are going to review purchase order financing in European countries. Continue reading below to learn more about:
- Europe’s largest economies
- Europe’s biggest exports
- Advantages of purchase order financing in Europe
- How to get access to purchase order financing in Europe
- How to apply for purchase order financing in Europe
Europe’s Largest Economies
According to www.woldometers.info there is about 748 million people in Europe. The majority of which live in the main countries that make up Europe’s largest economies. The top 5 economies in Europe are:
- Germany ($4.3 trillion)
- France ($3.2 trillion)
- United Kingdom ($3.1 trillion)
- Italy ($2.1 trillion)
- Russia ($1.7 trillion)
Europe’s Biggest Exports
So what are these economies exporting? Good question. When looking for global trade opportunities, it’s important to look at what products are most popular. These products will be more easily financeable when applying for purchase order financing in European countries. According to www.worldstopexports.com, the three largest exports from Europe include:
- Mineral fuels($329.7B)
- Optical or medical apparatus($237.6B)
Advantages of purchase order financing in Europe
There are many advantages to using purchase order finance in European trade transactions. Typical financing strategies from banks and asset based lenders only look at cash flow and current assets when determining a borrowing base. On the other hand, trade finance looks at open and future transactions. Having the ability to leverage purchase orders and accounts receivable can provide the liquidity needed to successfully grow your business.
Disadvantages of purchase order financing in Europe
Just like how close proximity of a number of countries creates trade opportunities it also creates it’s challenges. Purchase order financing in European countries certainly has it’s disadvantes. From the cost of funds, to the complexities of dealing with cross border trades, it’s important to find a lender that is familiar with the region. The main disadvantage of working with other people’s money is that you are subject to their terms, conditions, and experience when trading in complex markets. If you have your own capital, you are free to do as you wish.
Get access to purchase order financing in Europe
Accessing purchase order financing in Europe is quite simple. Because of the modern banking systems across most countries, uniform trade policies, and similar cultures, it is easy to secure financing. Even US based lenders are willing to support European trade finance. The best place to start is to find a lender that is local(within your same country), so your agreements are governed by local law and simple to understand. You will also find it easier to build a long term relationship with a local po funding provider.
Apply for purchase order financing in Europe
Applying for purchase order financing is easy. In an area like Europe with modern banking infrastructure and plenty of potential trading partners there is an abundance of trade finance providers, and more specifically European purchase order financing companies. Below is a step by step guide on how to apply for purchase order financing in Europe.
- Contact a global purchase order financing provider like Star Funding.
- Discuss your needs with a funding specialist.
- Complete the necessary applications and provide details of the purchase orders you would like to have financed.
- Sign the financing agreements.
- Process outstanding orders and continue to grow your business with the help of Star Funding, Inc.
We hope you have found the above information on purchase order financing for European trade to be helpful. Star Funding has helped thousands of clients successfully grow their international trade businesses. We have been providing purchase order funding and accounts receivable factoring for over 20 years, and we hope to hear from you soon.