Trade Finance

What is a Trade Finance?

A trade finance limit is just opposite to an Invoice finance or Debtor finance limit.

A Trade finance limit enables you to pay your supplier upfront or in advance before receiving goods.

You can get up to 100% of your supplier’s invoice funded and have flexibility to repay up to 150 days term.

A trade finance is also called as supplier finance.

What Our Clients Say

Based on 46 reviews
Ajay Kanumuri
Ajay Kanumuri
I would strongly recommend. Saroj Shah helped to get my loan with in span of three days. He was very supportive and clearly explained the loan process.
Abhishek Chhugani
Abhishek Chhugani
Wonderful service by Saroj. Took care of my requirements for business loan. Turnaround time from application to disbursement was 2 days.
Atulkumar Patel
Atulkumar Patel
I don't want to miss this opportunity to say About Saroj Work that he just made it impossible job into possible , I have got loan of 1.5 million event though I have very low credit score . Great work , and highly recommend for any kind of loan issues.
jas singh
jas singh
Great services, great effort by Saroj.
Michael Banabakis
Michael Banabakis
Easy to deal with and nothing was a problem!!
Liesel Collings
Liesel Collings
The broker was super helpful and understanding. He knew I needed the loan in a rush and got me the best deal possible.
Aghar Tefera
Aghar Tefera
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Nejatali Rotivand Ghiasvand
Nejatali Rotivand Ghiasvand
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Khanyi Moyo
Thank you. This was a great experience with a team that takes time to ask what your needs are then help you find the best deal.
Mai Yang
Mai Yang
Absolutely wonderful service! Saroj was amazing with keeping us up to date with our loan application which was approved quickly without any hassle. I would definitely recommend Broc Finance!

Critical Information Sheet

Borrowing Limits
Loan Amount$100k- $150M
Can be used for
  • Buying stock/Inventory
  • Paying creditors
  • Other working capital needs
RepaymentsGets settled against payment of invoices within 60-90 days
SecuritySecured against current assets of the business No real estate security required
Pre-Approval Time24 hours – 72 hours
Unconditional Approval and Settlement Time7-10 days
Documents required
  • Last 6-12 months bank statement.
  • Financial statements with Receivables/Payables ledger
  • Sample invoice with proof of delivery
  • ATO statements
  • A valid identification proof
Interest RatesStarts from 9.99% p.a.
  • Get paid against invoices in advance
  • Can go higher funding without real estate security
  • Does not impact business leverage
*The information provided in critical information sheet is intended as a guide only. Please contact us for more information.

Why does a business need Trade Finance?

Generally, businesses who are heavily reliant on domestic or international suppliers, needs to have access surplus cash flow to procure timely orders.

Having a trade finance limit enables a business to make prompt payment or advance payment to the supplier which gives them the buying power to negotiate better pricing with discounts and timely delivery.

With a Trade finance limit, you get an option to pay back the lender up to 150 days which is a good time fame to liquidate the orders, payback the lenders and book profits.

How does a Trade Finance work?

Step 1

Order goods from your domestic/overseas supplier

Step 2

Present your supplier’s invoice to the lender

Step 3

The lender pays the supplier’s invoice

Step 4

Payback the lender on agreed terms of repayment.

What are the benefits of having a Trade Finance limit?

A trade finance facility can be beneficial to your business in several ways. Some of the key benefits can be listed as below:

What documents are required to apply for a Trade Finance?

Why does a company need Trade Finance?

A trade finance facility may not be a suitable option for every business. However, it could be very useful for businesses involved in import and export of goods and services. A trade finance facility can be beneficial for both buyers and sellers.

For a buyer, generally paying for goods in advance becomes a big burden on the cash flow of the business and could witness several delays in procuring goods which can eventually impact the overall growth of the business. Having a trade finance facility helps them in making advance payment for goods to be imported and procure timely orders.

For a seller, exporting goods without receiving 100% advance may pose severe risk of default and hence they may not be comfortable dispatching the goods without receiving the full payment. A trade finance enables them to unlock cash flow from the manufactured goods in a much quicker time.

A trade finance facility not only helps to solve the liquidity problem for both buyers and sellers but also mitigates the risk in transactions involved in import/export of the goods between domestic and international trades.

FAQs About 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

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 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.

We will work with you

to overcome approval related hurdles

by getting your asset finance, property finance and unsecured business loans, without the frustrations of the bank process.