Trade Finance for Growing SMEs in Australia
Put your business on the global map with uncomplicated and effective funding
• Eliminate cash flow problems and get up to 90% finance for goods purchased
• Get your loan approved within days of application
• Benefit from a loan with no real estate security requirements
As international markets become increasingly accessible, it is important for every Australian business to stay agile and respond quickly to trade opportunities. Since these trades take place with different countries, they come with some inherent risks and uncertainties. These include:• Will the exporter be paid their dues on time and in full?
• Will the importer receive their goods on time and in the expected condition?
• Will the current political climate of the trading country make me vulnerable?
While many banking institutions provide trade finance to help mitigate some of these risks, they can be limited by their products, policies and rising regulatory costs to certify new clients. They usually:• Require several weeks to make a decision about whether or not the loan will be approved
• Have knowledge that is limited to the products they offer and are unable to design loans to suit your business
• Require real estate security and a large volume of documents to be filled as part of the application
At Bizsmart Finance our experience in running businesses for over 25 years in Australia has put us in a unique position to understand both sides of commercial financing. This enables us to match your needs with the right loan facility.
What is Trade Finance?
Trade finance is a form of working capital that bridges the gap between exporters’ and importers’ differing expectations of when payment should be made.
If you’re an importer, this facility will provide you with the funds you need to pay your supplier. This way, you can receive delivery of your goods without any delay. You then repay the loan once you’ve sold the goods for cash.
If you’re an exporter, this facility will provide you with funds so that your working capital balance is not affected while you wait for your customer to pay for the goods you’ve delivered. You repay the loan once you’ve received payment.
Trade finance is commonly used to finance cross-border transactions, though it is used domestically as well.
What Type of Goods Can Trade Finance Be Used for?
This versatile facility can be used for any type of legal goods and services. Whether you deal in finished goods, components and parts or raw materials, you can obtain the funding.
How Can I Pay my Suppliers?
You have access to various payment options. While a telegraphic bank transfer is the quickest, many traders opt for a Letter of Credit as it is perceived to be the most secure method.
What are the Benefits of Trade Finance• You can receive up to 90 per cent of supplier costs on domestic and international orders
• You get start-to-finish funding that covers you from the time you receive the order, to when you receive payment
• It has a fast approval process and does not require real estate as security
• The funding is scalable and grows in line with your sales and orders
• The facility is based on your customer’s credit worthiness and not on your current credit position
• It is flexible and can be combined with equipment finance to pay for goods once they arrive in Australia
• You can get credit terms of up to 90 days
• It does not impact your existing banking agreements
Trade Finance allows you to make the most of market opportunities, grow your capacity and become a more profitable business. It allows you to use your working capital the way you need to, instead of having it trapped in a transaction.
How can Bizsmart Finance Help?
Our skilled and experienced consultants take the time and effort to understand your business and industry. We then go through our network of over 40 lenders to get you the best possible quotes.
Trade Finance can sometimes be tricky and requires you to access a number of lenders before you pick the best one. We save you time and money by presenting you with the options that are most suitable for your purposes.
Find out how we can help you grow your business
Contact us today and talk to our consultants about your trade finance needs.