Helping to raise company finance to make the transaction happen.

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Trade Finance

For any businesses that import finished goods into Australia, trade finance represents a good opportunity to secure funding to allow your business to outlay money on large amounts of goods for sale. A wide range of goods may be funded with the general exception of perishable and toxic goods.

This type of funding is usually made available to organisations interested in raising company finance on the strength of confirmed orders or proven run rates on past sales. It is also available to businesses who have sourced products but need help in raising company finance to make the transaction happen.

With a proven track record in assisting companies to secure trade finance for imports, the team at Link Mortgage Services have all the knowledge, expertise and insight to empower importers to build profitable businesses.

The Process

So how does trade finance work? The trade finance process starts when a company secures a sales order from a credit-worthy customer and places an overseas purchase order. The financier will assess the credit quality of both the ultimate customer and the supplier. If the transaction is approved, a letter of credit is issued to secure the shipment of goods.

The funding line effectively stays open until the goods are sold. At that point the raising of a sales invoice enables the financier to advance funds through the factoring of invoices or invoice discounting facility, to satisfy the trade finance liability.

As a guide the financier would always look to secure a debenture over a company’s assets and invariably take a limited guarantee from its directors.

Trade finance can be quite complicated, especially to people without experience in the sector. To find out more, please get in contact with us to start the conversation and learn more.