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Trade Finance gives you access to suppliers around the globe.
It is a secured working capital solution enabling you to pay suppliers when they require, without using your own capital.
If importing, you can have your goods landed, delivered, re-packaged or modified and on-sold before having to come up with the purchase costs.
The facility is an off-balance sheet, revolving credit line giving you the option of extending your payment terms out to 150 days.
The facility allows you to keep up with your customers’ orders without any interruption caused by poor cash flow.
It gives you the confidence to plan ahead, manage your resources more effectively and grow your business.
It’s a way to make sure you never lose an opportunity because you are short of working capital.
The client imports sound reducing textiles and the business was poised for major growth.
The challenge was a cash flow gap caused by suppliers demanded payment before shipment.
The client’s bank wouldn’t help because of lack of acceptable security..
They were set up with a trade finance facility using unencumbered assets owned by the director.
This gave the client an initial limit of $200,000 allowing the business to meet the orders.
The 150 day repayment terms ensured the client has time to collect payments from its customers beforehand.
Within six months the facility limit was increased by $100,000.
The facility gives the client all the cash it needs to import the goods.
That means the client can take new orders well ahead of the delivery dates
You’ve made a sale. Your customer orders goods due for delivery in a month or so.
All you need to do is the lodge the order with your supplier – who could be local or overseas- and have the product delivered to your door.
But, what if your supplier wants a deposit paid up front and the balance paid before the goods leave the factory and you don’t have the cash?
The complexity of such a deal increases if your supplier is overseas.
So, here’s how we make it simple and quick to negotiate all the potential pitfalls.
Firstly, we get you approved for an off-balance sheet, revolving line of credit.
There is no cost to set it up. You’d don’t require Letters of Credit for overseas purchases and we give you a state of the art online portal to manage and track all transactions
If your supplier wants a deposit or has a pre-shipment charge we’ll sort it out. When the goods are ready to leave the factory or port we’ll pay for them.
You have up to six months to return the payment plus fees, but by then your customer has probably paid for the goods and you have made your profit.
Your payment goes back into the account and the money is there to use again when the time arises. The good thing is that you only pay fees for drawn funds.
Call us for a no obligation chat if this can help your business.
Email or Ph 1300 430 076