Every 4 Months, Our Client Receives Trade Finance to Export Products Overseas

Simple, quick, and cheap loans for import and export businesses that are structured to the business’s needs. For almost five years, our client has received (and continues to receive) finance to purchase Australian products (Ugg boots) to export overseas. The loan follows a cycle of:

• Approval.
• Direct payment to the wholesale producer.
• Product shipment.
• Sales revenue – and repeat.

The previous loan is paid off every four months and a new cycle begins. The process is kept simple, with funds moving directly from the financier to the product supplier. This has worked so well for our clients that they also started the same process with baby formula. Learn about import and export finance and short-term working capital funding.

Export and Import Finance for a Range of Business Needs

When You Need Money (to Make Money)

Whether you are an import/export entrepreneur or a seasoned trader, various funding options are available. Taking advantage of finance for short-term working capital to begin or expand your trade business can:

• Speed up purchases.
• Increase cash flow.
• Give you room to explore more business opportunities.
• Increase profit.
• Allow you to make bulk purchases. Oftentimes, suppliers offer significant discounts for bulk purchases.
• Increase profit margin.
• Stabilise the supply chain(*1).

What is Short-Term Working Capital?

Short-term working capital is finance provided by a bank or other financier for businesses to meet current demands. It is provided as a loan agreement and can be used for a range of business purchases, costs, and debts. Short-term capital is helpful for businesses that have large gaps between supplying goods or services and being paid(*1).

Why is Maintaining Working Capital Important for Importers and Exporters?

Due to many importers and exporters having large stock inventories, their working capital needs to be much higher than service-based business. The delay between purchase of goods, sale and receipt of payment can be delayed which causes a deficit in the working capital. As working capital is also used for utilities, staff salaries, insurance premiums and other costs, it must be maintained for the business to operate without disruption(*2).

What Types of Things Are Financed for Import and Export Business’ in Australia?

In addition to everyday business equipment, finance can also be secured for:

• Working capital.
• Purchase orders and contracts.
• Equipment finance.
• Office fit outs.

Fast & Streamlined Approvals – Trans Pacific Finance

During 2018 – 2019, Australia broke a record in exports – reaching $373 billion in exported goods(*3).

Australia’s strong international trade relationships and (16) free trade agreements give small and large importers and exporters access to the global market(*3,4). From Australian-made Ugg boots to baby formula, Australia’s high-quality products are in demand around the world(*5).

For professional financial advice on trade finance, equipment loans, and purchase order funding, talk with Trans Pacific Finance. We are specialists in commercial business finance and can secure both short-term and long-term financial solutions tailored to your needs.

References

*1. Tat, TY. What is Export Finance? A Comprehensive Guide (2020). ICC Academy. N.d.
*2. Boyte-White, C. How Much Working Capital Does a Small Business Need? Investopedia. 2022.
*3. Department of Foreign Affairs and Trade. Trade and Investment at a Glance 2021. 2021.
*4. Australian Trade and Investment Commission. Why Australia: Benchmark Report 2022. Australian Government. 2022.
*5. International Cargo Express. Why Australian Goods Are Well Sought-After: Behind Our Exports High Demand. 2020.