Pre-Shipment Finance UK 2026

Market Invoice is an independent UK invoice finance comparison site that ranks 85 active UK lenders.

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. Stenn (export specialist), Trade Finance Global (broker), Optimum Finance and Nucleus all offer pre-shipment facilities. 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.

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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 t

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. Stenn (export specialist), Trade Finance Global (broker), Optimum Finance and Nucleus all offer pre-shipment facilities. 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
Stenn (now part of Investec)2-4%No minExport specialist, instant API decisions
Optimum Finance2-5%£100kBroader trade finance proposition
Nucleus Commercial Finance2-4%£500kMid-market manufacturers and exporters

How pre-shipment finance works for UK exporters

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Pre-shipment vs post-shipment vs LC-backed finance

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Typical advance rates and fees

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

Best UK pre-shipment finance providers

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

When pre-shipment finance fits and when it doesn't

See the FAQ below for the detailed answer to this question. For broader context, also see our guides hub and our cost calculator.

OM

Oliver Mackman

Director, Market Invoice

Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.

Last reviewed: 8 May 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?

Stenn (export specialist with instant API decisioning), Trade Finance Global (broker across multiple lenders), Optimum Finance (broader trade and invoice finance), Nucleus Commercial Finance (mid-market). For LC-backed transactions, Stenn and HSBC Trade Bank offer the deepest specialism. 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.