Trade Finance

Import finance and trade finance services

Trade Finance is a trade facilitated with cash, credit, investments and other assets to prepay for export goods to be shipped.

Having troubles creating a letter of credit to your importer's bank to facilitate a Trade Finance? Intellichoice's expert and experienced loan specialist can help you through the process. Get the best deals, understand the terms and conditions, and be guided with experts for a smooth transaction through us. Talk to our business loan specialist today.

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Our import finance and trade finance services offer you the complete package

Our import finance and trade finance services offer you the complete package to help you develop your business profitably and with confidence. Jump start your business and gain the freedom you need to trade and take advantage of any opportunities that arise.

In really simple terms Trade Finance is when an exporter requires an importer to pay for goods that are shipped to them.

As part of the transaction, the person who is responsible for importing the goods may require documentation of exactly what goods have been shipped.

The importer’s bank may provide what is known as a letter of credit to the bank of the exporter which essentially states that they will pay for the goods. The exporters’ bank may then advance the funds to the exporter based on the strength of the export contract.

Trade finance simply fills the gap that is often left between payments for imports and the actual receipt of funds through the sale of the stock.

It can provide important cash flow at a time when it is most required. The right trade finance package can make an enormous difference to the success or failure of your business.

Trade Finance is gaining popularity in Australia as it allows lenders to give business money for inventory they are holding – stock that is yet to go out the door.

This practice can be used in different ways, but it is really ideal for small businesses that proving a success and growing fast.

It is important that your business has a clear credit history and established and proven good management practices.

This kind of finance allows a well-run business to access a level of growth that it couldn’t manage otherwise.

Cash can be provided up front for a wide range of businesses but is particularly good for business where the stock may still be a work in progress – eg. a range of clothes that are yet to be completed.

Need a business loan to grow your trade company? Trading is no easy business. It involves a complicated analysis of market conditions, a close monitoring of cultural and commercial situations, and a reliance on fluctuating exchange rates. So when it comes to the actual transaction, you want to make sure you’re using a service that you can rely on.

Our experts offer a range of financing solutions and they can assist you in facilitating growth in foreign markets for your business cost-effective methods of funding your cash flows and working capital technology to manage your trade finance transactions, managing your trade risk. Contact us now! And talk to our Consultants about your trade finance needs

For information on how you can obtain trade finance to help your business succeed, contact us on 1300 55 10 45.

30 Second Explainer Videos

Trade finance simply fills the gap

It can provide important cash flow at a time when it is most required. The right trade finance package can make an enormous difference to the success or failure of your business

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Trade finance is gaining popularity in Australia

As it allows lenders to give business money for inventory they are holding – stock that is yet to go out the door. This practice can be used in different ways, but it is really ideal for small businesses that a proving a success and growing fast…

What are the types of trade finance?

1) Cash flow services. These services include the management of foreign currency accounts, the facilitation of foreign currency overdrafts and telegraphic transfers

2) Foreign exchange. This includes services for transactions, forwards and alternatives that can help ensure your business against unfavorable market changes, while also taking advantage of favorable currency movements.

3) Domestic trade services. This kind of trade finance can fund domestic suppliers and support trading cycles within Australia.

4) Import services. Businesses associated with importing may take advantage of documentary letters of credit, documentary collections and trade finance.

5) Export services. Exporters may require documentary collections, letters of credit, gathering transactions, working capital guarantees, and financing solutions both pre- and post-shipping.

How does trade finance work?

As domestic and international trade is an unstable marketplace, it’s quite common for businesses to use finance for trading. There is huge fluctuations in cash flow for these businesses, and there is a little certainty with economic conditions and foreign exchange rates, so trade finance comes with more flexible terms and amounts to other financing solutions.

How does import finance work?

Imported goods may be purchased on letters of credit or open terms. Much trade is done on trust between the purchaser and seller; however as trade and companies grow and there is a lack of trust amongst jurisdictions and new buyers or sellers – trade instruments are used all the more.

Why use import finance?

There are many reasons to use a lender to finance imports. Outside of the high cash demands; this will also create certainty and security around trades. Understanding the cash cycle and knowing how quick an item turns alongside the edges and transport mechanism is of utmost importance. In the event that the right import finance and ABL structure can be put in place, then the trade cycle of a business can be separately migrated away from the working capital requirements of a company and work standalone; to a large degree.

Benefits of import financing

The benefits of import finance mean that importers can grow without taking on equity or angel investment, losing share of the business.

How do I compare products that allow trade finance?

The interest rate, financing terms, repayments and available currencies.

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Here at Intellichoice, we do the legwork. Our highly qualified team will provide expert guidance and hassle-free competitive mortgage options. With our ever-growing, extensive list of lenders, we can find the right products under the right conditions. Our cutting-edge systems and highly qualified team will identify the finance that works for YOU. We’ll then provide you with options in a clear and simple manner. Enjoy spending your time finding the right property, car or equipment… and let US do the finance finding.