When an Australian business is importing goods, their overseas seller will often require payment prior to dispatching these goods. This can create a cash flow problem for importers because until they have possession of the goods, they cannot sell to their customers and hence receive payment. In this scenario a Trade Finance facility will greatly assist.
A Trade Finance facility will bridge this gap in cash flow by paying the overseas supplier at the time of ordering the goods. This allows the Australian business to order imported goods with confidence, and often take advantage of more competitive pricing.
The client will then repay the financier at and agreed time and after the goods have been received onshore.