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Trade Finance is a specialist funding solution that helps businesses purchase goods — both domestically and internationally — by bridging the gap between paying suppliers and receiving payment from customers.
It’s particularly valuable for businesses that import, export, or need to pay for large stock orders before generating sales revenue.
Trade Finance ensures that cash flow isn't tied up during long production, shipping, or sales cycles — giving businesses the ability to trade more, and grow faster.
A supplier issues an invoice for goods ordered by your business.
Instead of paying upfront, the Trade Finance provider pays the supplier directly on your behalf.
Your business repays the financier within an agreed term (typically 90–180 days).
The goods can then be sold to customers, and proceeds used to repay the facility.
Facilities are typically structured around:
Transactional funding (each trade separately funded), or
Revolving facilities (ongoing access up to a pre-approved limit).
Facility Size
Typically from $50,000 to $5M+ depending on trading volume
Use of Funds
Payment of supplier invoices (domestic or international)
Repayment Term
Usually 90–180 days per transaction
Security
Goods purchased, receivables, or additional assets
Interest & Fees
Charged on funded amount; often includes line fees and transaction fees
Supplier Payments
Made directly by financier (either upfront or under Letter of Credit)
✅ Allows businesses to pay suppliers upfront without draining cash reserves
❌ Short repayment periods (90–180 days) can pressure cash flow if goods don't sell quickly
✅ Facilitates larger trading volumes and business growth
❌ Complex documentation, especially for international trades
✅ Supports importers, exporters, wholesalers, and manufacturers
❌ May require additional security if goods are perishable or hard to liquidate
✅ Frees up working capital for other business uses
❌ Costs can accumulate if goods are delayed or customers are slow to pay
Facility
Best For
Flexibility
Security
Typical Speed
Debtor Finance
Unlocking cash from outstanding invoices
Medium-High
High
Linked to business accounts
Fast (24–48 hours)
A financial instrument guaranteeing a supplier that payment will be made if goods are supplied according to contract terms.
Sight LCs are payable immediately on presentation; Usance LCs are payable at a future date (e.g., 90 days).
In Trade Finance, the goods being purchased often act as the primary collateral.
The complete journey from placing an order to selling goods and receiving customer payment.
The maximum funding available across multiple trade transactions at any one time.
Each individual funding transaction under the Trade Finance facility.
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
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