Specialised Business Finance

Whether you are an importer, exporter, wholesaler, manufacturer or a simple business service provider, timing of payments and receipts can cause cash flow issues that can effect smooth running of your business operations.

There are a number of specialised loans available that may assist alleviate these timing issues, including Trade Finance, Documentary Trade and Invoice Discounting.

Trade Finance

Meet your working capital needs with finance to help your export, import and domestic trade purposes. ACW Finance can arrange access to short term finance solutions to keep your business running smoothly.

Trade Finance is suitable for those business operations that need funding for the purchase of goods or services prior to shipment or offering extended payment terms to your buyers. It can provide flexibility when it comes to making stock purchases, offering extended credit terms or paying suppliers early. Essentially it bridges funding gaps between incoming and outgoing payments.

You will have the option to finance in either Australian dollars or other major foreign exchange currencies with payment terms that align with your trading cycle, from 7 days to 180 days. In addition, you can have the ability to mitigate exchange rate risk through forward exchange contracts or other foreign currency options.

Documentary Trade

This type of finance is suitable for importers and exporters whether you buy or sell internationally or locally. It provides the ability to manage risk associated with non-payment or non-delivery of goods. As with Trade Finance, most lenders typically offer payment terms up to 180 days.

There are a number of options available:

Letter of Credit

An undertaking given by a bank/lender to pay the exporter, provided they meet the terms and conditions of the letter.
As an exporter, you might ask for a letter of credit if you're unsure of the importer's ability to pay. By receiving a letter of credit from a bank, you gain that bank's payment commitment and minimise your credit risk for the transaction.
As an importer letters of credit allow you to buy goods internationally where you otherwise might not be able to.

Documentary Collections

Are the middle ground between open account trading and letters of credit. A trusted third party - a bank - is involved in releasing shipping documents to the importer and subsequent collections of the payment due to the exporter.
As an exporter you gain comfort knowing the bank will control the shipping documents until the importer has paid or agreed to pay for the goods.
As an importer you do not need to make advance payments prior to the goods being shipped.
Documentary collections can be less expensive than letters of credit, however they have different risks depending on payment and shipping terms.

Invoice Discounting

Invoice Discounting, or Debtor Finance, works by releasing up to 80% of the working capital tied up in existing invoices as well as new invoices when they are raised.

It is suitable for you if –

You sell products/services on standard trade credit terms
You issue invoices for completed services or delivered goods
You have a suitable debtor management and accounting system
You operate in industries such as Manufacturing, Wholesale, Import & Distribution, Transport & Logistics, Labour Hire, Printing or Business Services

It can help you when you’re –

Looking to grow, expand operations or take on major customers
Under cash flow pressure with existing funding arrangements
Experiencing slow paying debtors
Struggling to pay suppliers or the ATO on time
Planning a management buy-out, merge or acquisition
Real Estate security is not required as your debtor ledger forms part of the Lenders security

< Back