Trade Finance

Under a trade finance facility, once you receive an invoice from the supplier, you need to present it to the lender and the lenders pays to the supplier if it’s within the approved limit. You can pay back the lender on agreed terms.

A trade finance facility can be very useful for those who regularly need to order goods from domestic or international suppliers. They can pay the supplier in advance through the trade finance limit and can have quicker access to the goods. This also eliminates the risk involved in delivery of goods.

Yes, most of the lenders offer the option to remit the funds to the supplier in foreign currency.

Though the risk involved in a trade transaction is reduced to a certain scale on involving a third-party financier, there still exists some risks to both buyers and suppliers

Buyers
Sometimes, the supplier may not deliver the goods after receiving the advance payments from the financier. To mitigate this risk, generally, finance company do its due diligence on suppliers and may require payment acknowledgement documents against payment made.

Suppliers
Suppliers bear the risk of non-payment or delayed payment from buyers on delivery of goods. With a financier in picture, this risk gets eliminated as the lender makes advance payment or issue a letter of credit to the supplier before the goods are dispatched.

There could be other external risks like foreign exchange fluctuations risk, political and economical risks. Our expert team at Broc finance can help you to understand and mitigate these risks by pitching you with the right lender.

To be eligible for a trade finance facility in Australia, the business should be

Domiciled in Australia
Must be profitable for at least last 2 years
Should have positive tangible net worth in the business

You may get funded up to 100% of the supplier’s invoice.

We can get an indicative offer in as low as 48 hours of full application and limits can be unconditionally approval within 3-5 business days depending upon case to case.

At Broc Finance, we endeavour to get the most adequate facility suitable to the business requirements of our clients. In most of the cases logged in through us, we try to get an indicative offer from the lender for our client’s consideration before proceeding with formal application and consent to credit check. This approach helps our clients to avoid unwanted rejections and credit checks which can significantly impact their credit score.

Please feel free to contact us if you have any other questions. We would be more than happy to answer it.

Yes. Trade finance supports both domestic and international supplier payments. Most lenders offer direct remittance to overseas suppliers in the supplier's local currency with competitive foreign exchange rates applied. This eliminates the FX risk that arises when paying in Australian dollars to a supplier quoting in USD, EUR, or another currency. Advise the transaction currency and destination country at the point of inquiry so the most suitable lender for your trade route can be identified.

Purchase order finance provides funding against a confirmed customer purchase order before you have sourced or paid for the goods. Trade finance funds the payment to your supplier against the supplier's invoice. The two products serve different points in the supply chain: purchase order finance covers the gap between receiving a customer order and paying your supplier; trade finance covers the supplier payment directly. Some lenders offer a combined facility covering both stages.

You place an order with your overseas supplier, then present the supplier's invoice to the trade finance lender. The lender pays the supplier directly, either by bank transfer or letter of credit, up to your approved facility limit. Once the goods arrive, you repay the lender on agreed terms of up to 150 days. The facility then resets, allowing you to fund your next order. This keeps procurement consistent without tying up your working capital in upfront supplier payments.

A letter of credit (LC) is a financial institution's guarantee that a seller receives payment once specified delivery conditions are met. Overseas suppliers often require an LC for large or first-time transactions as payment security before dispatching goods. The lender issues the LC on your behalf, the supplier ships the goods, and the lender pays upon presentation of the shipping documents. If your supplier has specifically requested an LC, advise this at the point of inquiry as it affects which lenders and products are most appropriate.

Standard trade finance generally requires at least 2 years of profitable trading history. For businesses that do not yet meet this threshold, alternatives include purchase order finance, which assesses the confirmed order rather than company history, invoice finance against domestic receivables, or a structured working capital loan. A specialist assessment of your current trading position and specific funding requirement will identify which product best matches your stage of business without requiring the standard two-year threshold.

Yes. Domestic trade finance allows you to pay Australian suppliers upfront using the facility, with repayment terms of up to 150 days. This is particularly valuable for businesses that need to pay suppliers promptly to secure early payment discounts or priority order fulfilment without depleting working capital. The mechanics are identical to international trade finance: present the supplier's invoice to the lender, the lender pays the supplier, and you repay the lender on agreed terms.