As with most financial instruments, most of the interest and other charges that lenders administer during trade finance will be derived from the level of risk associated with the underlying transaction. The riskier, the higher the fees. Lenders also charge arrangement fees to set the line up as funds are set aside. However, these will all be set on the basis of many possible elements such as security offered, jurisdictions, and insurance cover. This is because the complexity and structure of the transaction will naturally impact the amount of time a lender needs to set it up, which will usually be up to 4 weeks. Often, traders will use other facilities in conjunction with trade loans. Trade loans are advantageous for many reasons. This is because they smooth the transaction cycles allowing the supplier to be paid on time and the borrower to receive effective credit terms. This can also help buyers negotiate supply-side discounts since they are able to make payments to the supplier sooner, which tends to boost a firm's reputation as a trustworthy counterpart. Many firms use this facility to fill seasonal demand or address specific trading cycles. However, since this type of facility caters to shorter-term trades, they do tend to have higher interest charges. These higher charges increase the probability of default. As with any loan, defaulting on a trade loan will negatively impact a borrower's credit score and may impede their ability to secure financing again in the future.