Trade Finance

Trade Finance is our daily work and Radiance is always available to support our client’s needs. Radiance have our presence in global market. Radiance has strong relationship in international banking system especially for trade finance, so we offer innovative and customized funding solutions for import and exports worldwide.


A trade finance mechanism whereby an exporter sells its export receivables (bills of exchange or promissory notes, or simply issued invoices, which the exporter is selling on an open account basis) at a discount. The company purchasing the receivables is called a factor. Factors are normally specialized financial services companies, but many are owned by banks. Normally, after the factor has purchased a receivable, the importer or buyer pays the factor directly. Some factors actually issue the invoices to buyers and, in effect, operate the exporter’s sale ledgers. Some factors operate on a non-recourse basis i.e. they assume the risk of non-payment. Less frequently, the factor will take recourse to the exporter for all or part of the sums involved in the event of non-payment or delayed payment by the buyer.

Recourse Factoring

In this type of product up to 75 to 80 % of the value of the invoice will be consider for factoring. Interest will be charged from the date of advance to the date of collections. Factor does not participate in the credit sanction process. In India, factoring is done with recourse.

Non Recourse Factoring

In this product credit risk lies with the factors. Factor purchases Receivables on the condition that the Factor has no recourse to the Client, if the debt turns out to be non-recoverable. Factor participates in credit sanction process and approves credit limit given by the Client to the Customer. This type of transactions happens only in overseas market.