Pre-Shipment Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 89 UK invoice finance providers.

Pre-shipment finance is UK trade finance that funds the production cycle between receiving a confirmed order and shipping the goods. Used by exporters, contract manufacturers and importers who need to buy raw materials or pay manufacturing labour before they have an invoice or a delivered shipment to fund against. Trade Finance Global (broker), Optimum Finance and Nucleus all offer pre-shipment facilities (Stenn, formerly the best-known export specialist, entered administration in December 2024, joint administrators Interpath Advisory). Typical advance is 70 to 90 percent of confirmed order value, fees 2 to 4 percent per shipment cycle, repaid when the buyer pays the post-shipment invoice.

Last updated: 8 May 2026.

Pre-shipment finance is UK trade finance that funds the production cycle between receiving a confirmed order and shipping the goods. Used by exporters, contract manufacturers and importers who need to buy raw materials or pay manufacturing labour before they have an invoice or a delivered shipment to fund against. More detail + scope

Summary

Pre-shipment finance is UK trade finance that funds the production cycle between receiving a confirmed order and shipping the goods. Used by exporters, contract manufacturers and importers who need to buy raw materials or pay manufacturing labour before they have an invoice or a delivered shipment to fund against.

Trade Finance Global (broker), Optimum Finance and Nucleus all offer pre-shipment facilities (Stenn, formerly the best-known export specialist, entered administration in December 2024, joint administrators Interpath Advisory). Typical advance is 70 to 90 percent of confirmed order value, fees 2 to 4 percent per shipment cycle, repaid when the buyer pays the post-shipment invoice.

This page covers

pre-shipment finance UK: production-cycle funding for exporters and manufacturers, LC-backed structures, best providers

Not covered here

General invoice finance education (see /guides/), individual provider reviews (see /providers/), full pricing breakdown (see /guides/costs/)

UK providers worth knowing

ProviderFee fromMin turnoverWhy it fits
Optimum Finance2-5%£100kBroader trade finance proposition
Nucleus Commercial Finance2-4%£500kMid-market manufacturers and exporters

Related finance

Pre-shipment finance pairs with purchase order finance and, for overseas trade, export finance and import finance.

AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

Last reviewed: 30 July 2026

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Pre-Shipment Finance UK FAQ

What is pre-shipment finance?

UK trade finance that funds production costs (raw materials, labour, freight) between receiving a confirmed order and shipping the goods. The lender advances against the confirmed order; you produce and ship; the buyer pays the invoice; the lender repaid principal plus fee.

Pre-shipment vs post-shipment finance?

Pre-shipment funds the production cycle (order to ship). Post-shipment funds the payment cycle (ship to payment). Many UK exporters use both: pre-shipment to fund production, post-shipment (invoice finance) to fund the 30-90 day payment terms. Combined, they cover the full order-to-cash cycle.

Who uses pre-shipment finance UK?

Contract manufacturers winning large export orders, food and drink exporters with seasonal production, fashion brands fulfilling wholesale orders, OEM electronics manufacturers, and importers buying from overseas suppliers under letter of credit. Anyone with a confirmed order whose production cost exceeds their working capital.

How does pre-shipment finance work with letters of credit?

On letter of credit (LC) backed exports, pre-shipment finance is often structured as 'packing credit' or 'red clause' financing. The LC issuing bank or a specialist trade finance lender advances funds against the LC itself, with the LC providing security.

Once goods are shipped and documents presented to the LC bank, the LC pays the original lender and the exporter receives any balance. Used heavily for exports to emerging markets where end-buyer credit isn't directly bankable.

Best pre-shipment finance providers UK?

Trade Finance Global (broker across multiple lenders), Optimum Finance (broader trade and invoice finance) and Nucleus Commercial Finance (mid-market) are the active UK options we track. For LC-backed transactions, HSBC Trade Bank offers the deepest specialism. Stenn, formerly a major export specialist, entered administration in December 2024 (joint administrators Interpath Advisory) and is no longer an option. Get at least 2 quotes.

Cost of pre-shipment finance UK?

2-4% per shipment cycle. Effective APR depends on production-to-payment cycle length: a 60-day cycle at 3% equals roughly 18% APR. Plus arrangement fees (£1,000-£5,000) on facility setup. Lower than emergency working capital loans but higher than invoice finance, reflecting the production risk being absorbed by the lender.