If your business buys goods from overseas suppliers or sells to international buyers, cash flow can become a serious challenge. You need to pay your suppliers upfront — often weeks or months before your customers pay you. Trade finance fills that gap.
What Is Trade Finance?
Trade finance is a specialist funding solution designed for businesses involved in importing and exporting. It allows you to pay suppliers when goods are ordered, then repay the lender when your customer pays you — often 30 to 120 days later.
How Does Trade Finance Work in Australia?
The process is straightforward. You receive a purchase order from your customer, apply for trade finance, and your lender pays your supplier directly. Once your customer pays you, you repay the lender. The facility essentially bridges the gap between your outgoing payments and incoming revenue.
Who Can Use Trade Finance?
Trade finance suits a wide range of Australian businesses including:
- Importers purchasing goods from Asia, Europe, or the US
- Wholesalers and distributors managing large inventory orders
- Manufacturers sourcing raw materials from overseas
- Retailers with seasonal purchasing requirements
- Exporters needing to fund production before payment
Key Benefits of Trade Finance
- Preserve cash flow — pay suppliers without draining your working capital
- Take on larger orders — scale without being limited by your cash position
- Negotiate better terms — pay suppliers promptly and secure better pricing
- Flexible structures — facilities can be tailored to your trading cycle
Trade Finance vs Business Loan: What Is the Difference?
Unlike a traditional business loan, trade finance is tied to specific purchase orders or invoices. It is self-liquidating — meaning it is repaid as soon as your buyer pays you. This makes it lower risk for lenders and often easier to access than a general business loan.
How Much Can You Borrow?
Trade finance facilities in Australia typically range from $50,000 to $5 million or more, depending on your business turnover, the size of your purchase orders, and the strength of your buyers. Some lenders will fund up to 100% of the purchase order value.
What Do Lenders Look For?
To qualify for trade finance in Australia, lenders typically assess:
- Confirmed purchase orders from creditworthy buyers
- Your business trading history (usually 12+ months)
- Your supplier relationships and terms
- Gross margins and ability to repay once buyers pay
How Co-Pilot Finance Can Help
At CPFI, we work with a panel of specialist trade finance lenders who understand the Australian import and export market. Whether you need a one-off facility for a large order or an ongoing revolving line, we can match you with the right solution quickly.
We handle the paperwork, negotiate the terms, and get you funded — so you can focus on growing your business.
Ready to explore trade finance for your business? Apply now or contact our team today.