Import and Trade Finance
Unlock opportunities and trade across borders with a trade and import finance facility.
Import and Trade Goods with Confidence
Buying material goods from overseas or domestic suppliers is vital to many small businesses’ operations. However, importing goods can cost a lot upfront, and many SMEs aren’t able to produce the funds in time. With trade and import finance, businesses can purchase goods with confidence knowing they have plenty of time to pay.
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What is Trade and Import Finance?
Trade and import finance is a flexible line of credit designed for businesses purchasing material goods. This form of financing allows you to secure the necessary goods without tapping into your cash reserves or disrupting your cash flow. With terms ranging from 60 to 210 days, you can repay the credit once your imported materials have been converted into saleable products, giving you the breathing room to manage your finances effectively.
Why Choose Trade and Import Finance?
Bridge the Cash Flow Gap
When you pay suppliers out of pocket, you won’t be getting the cash back until you’ve sold the product to your customers. If you sell to your customers on credit terms, the time between paying for the materials and seeing a return is quite significant, leaving you with a cash flow gap. With trade and import finance, you can close this gap, allowing you to maintain your cash reserves for other critical business operations like payroll, utilities, or emergencies.
Strengthen Supplier Relationships
Timely payments are crucial to maintaining strong relationships with your international suppliers. Trade and import financing ensures you can pay upfront, opening the door to negotiating better terms, discounts, and pricing. You can even gain favourable treatment from your suppliers and ensure they prioritise your needs.
Pay Interest Only On Borrowed Amount
You are approved up to a maximum credit limit, but you only pay interest on the amount that you’ve drawn down, rather than on the total amount, like you would with a traditional term loan. This turns into significant savings, allowing you to have cash to fall back on whenever you need it.
Expand Beyond Cash Flow Constraints
With access to a line of credit, your purchasing power increases. You’re no longer limited by your current cash flow, enabling you to buy higher-quality materials, increase order volumes, and expand your product lines.
Gain Competitive Advantage
Access to better materials at lower prices can give you a significant edge over competitors. Trade finance allows you to source high-quality goods globally, often at more competitive rates than local options.
Who Benefits from Trade and Import Finance?
Trade and import finance is particularly beneficial for businesses in industries such as manufacturing, construction, and retail, or any business that relies heavily on material inputs. No matter the size of your business, if domestic or international procurement of materials is a part of your strategy, trade finance could be a game-changer.
Why Partner with Darkhorse Financial?
At Dark Horse Financial, we are committed to helping your business succeed. With our help, you can secure the materials you need from overseas markets with the right line of credit solution. We believe in providing not just a service but a partnership that drives your business growth.
Tailored Solutions
We customise trade and import finance options that align with your unique business needs.
Expert Guidance
We’re experts in trade finance— we’ll provide you with insights and support every step of the way.
Broad Network of Lenders
We connect you with a range of trade and import finance providers to secure the best rates.
Opening Up Possibilities with Trade and Import Finance
Sometimes, the machinery you need for your business is only available overseas. Can you use trade and import finance to buy the equipment you need?
With trade finance loans, you can do more than just purchase materials. It’s possible to buy equipment or machinery overseas as well.
How it Works:
- Use the trade and import line of credit to purchase the equipment from an overseas supplier.
- When the asset arrives in Australia and clears customs, you can use equipment finance to pay off the line of credit.
- Through this solution, you use trade and import finance to get the equipment you need into the country while equipment finance allows you to pay off the cost in 3-5 years.
Ready for Your Business to Reach Beyond Borders?
Don’t let cash flow constraints hold you back from importing the materials your business needs. With our trade and import finance solutions, you can confidently purchase overseas and unlock your business’s full potential. Contact us today to learn more.
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Trade and Import Finance FAQs
Import finance is a type of financing that provides businesses with the necessary funds to purchase goods and services from overseas suppliers. It helps cover supplier payments before the goods are sold, allowing businesses to maintain cash and operations while waiting for customer payments.
An example of an import is a clothing retailer in Australia purchasing garments from a manufacturer in China. The retailer imports these goods to sell them in the Australian market. The process of buying these garments from a foreign supplier and bringing them into the country is considered an import.
Trade finance refers to a line of credit for the purchase of material supplies. While Trade finance includes paying for domestic supplies, it’s often also used as a term to describing financing the import of goods too.
Trade finance is a line of credit solution specifically designed to finance the purchase of goods for import and export activities. In contrast, a standard business term loan comes in the form of a lump sum that the borrower has to repay with interest over time. Standard business loans can be used for any commercial purpose.
Import finance and export finance serve different purposes. Import finance provides funds to businesses for purchasing goods from international suppliers, while export finance provides funds to support the sale of goods to foreign buyers.
The documentation required for trade and import finance differs per lender and can include financials, proof of trade transactions, supplier contracts, ATO portals and an Asset and Liability position of directors. Our team will guide you through the process to ensure a smooth application.
The costs associated with trade and import finance involve interest on the amount borrowed from the line of credit and vary between bank and non-bank lenders significantly.
Interest rates for trade and import finance differ depending on the lender and your business circumstances. If you work with us, we’ll help you secure the best terms possible for your business.
Disclaimer: Loans and loan products are to approved applicants only. Rates, fees, policy and inclusions are subject to change without notice. As such no guarantees or warranties are made about the accuracy of the information on this page.
