Updated on 13th August 2026

As a small or medium sized business in Australia, peak fluctuations in demand, and therefore revenue, present an opportunity for additional profit.

But it also presents a challenge. If your business needs to buy or import stock months before Christmas, EOFY or another peak trading period, the cash from last season’s sales may still be locked up in unpaid customer invoices.

A Trade Finance facility from ScotPac empowers you to pay suppliers now before your stock sells.

Explore Trade Finance today.

Why Do Seasonal Businesses Run Out of Cash Right Before Their Busiest Months?

For seasonal businesses across Australia, the timing problem is predictable and yet difficult to avoid. Suppliers, especially when based overseas, require payment immediately or soon, while customers won’t pay until after the stock has been received, resold, invoiced and paid for. This could be months after the season’s sales have already happened.

That leaves a cash flow gap right before the seasonal peak period, precisely when a business needs to spend the most. This is exactly the problem ScotPac’s Trade Finance is designed to solve.

Seasonal cash flow problems happen because money goes out long before it comes back in. The fixed costs of ongoing operation, however, keep running the whole time.

The main drivers behind this squeeze include:

  • Offshore manufacturing can have long supplier lead times
  • Deposits or full payment is often required before goods are dispatched
  • Customers pay on standard trade terms of 30 to 90 days

Traditional lenders, such as banks, provide general working capital solutions. These are often too slow to be practical for seasonal, inventory-heavy needs. Plus, most require property or another fixed asset to be put up as security

How Does Trade Finance Help Australian Importers Fund Stock Before Peak Season Arrives?

The pain point of peak seasons isn’t a lack of demand. It’s the opposite: High demand that is not timed with cash flow cycles.

Many small and medium-sized Australian businesses are forced to wait weeks, and sometimes months, for customers to settle invoices. This translates to a lack of cash to fund stock ahead of the peak season. The lag means orders need to be turned away when it should be the opposite.

Trade Finance is designed to bridge this cash flow gap. It provides working capital to cover the period between making a sale and procuring the materials or stock needed to fulfil it, whether the goods are sourced locally or from international markets.

How does it work?

  • Funding is provided and approved against the purchase order itself
  • It is not based on just the SME’s balance sheet
  • Suppliers are paid directly and immediately
  • SMEs can benefit from early payment and bulk order discounts
  • Supply chain and trading relationships are protected
  • Repayments are structured around the business’s sales cycle

Having reliable access to working capital means a business can fuel its own growth. Whether this in the form of taking on larger orders, securing bulk pricing, or just maintaining stock levels to meet seasonal demand spikes, Trade Finance can help ensure season cash flow.

Why does ScotPac Trade Finance require Invoice Finance?

At ScotPac, Trade Finance is always paired with an Invoice Finance facility. This ensures that both ends of the cash flow cycle are covered:

  1. There is sufficient funding to order stock at the start of the cash flow cycle, and
  2. Access to working capital is unlocked from unpaid invoices at the end of the cycle.
How does Invoice Finance work? 

ScotPac’s Invoice Finance facility provides an advance of up to 85% of the value of your outstanding invoices.

This helps turn peak-season receivables into working capital rather than having to wait.

Which Australian Industries Use Trade Finance Ahead of Peak Trading Periods?

Trade Finance tends to deliver the most value for business-to-business sectors that incur predictable demand spikes and have offshore supply chains. Some examples include:

  • Toy, gift and homewares wholesalers/importers stocking up for Christmas and Boxing Day sales
  • Garden, pool and outdoor equipment wholesalers ordering ahead of spring and summer demand
  • Fashion and footwear wholesalers funding seasonal collections months before they reach shelves
  • Electronics and appliance resellers stocking up ahead of Black Friday, EOFY and back-to-school sales
  • Food and beverage exporters scaling production ahead of seasonal demand in overseas markets

As we see it here at ScotPac, the businesses that get the most value from our working capital solutions are the ones who set it up before the peak season starts, rather than the ones facing a supplier deadline or cash shortfall already.

Ready to fund stock ahead of your next peak season? Learn more about a ScotPac Trade Finance and how it works alongside Invoice Finance to cover your full working capital cycle.

How Do You Apply for Trade Finance Before Your Peak Season Starts?

You can start your application for a ScotPac Trade Finance solution online. Or if you are not sure which business finance solution is right for your needs, give our team a call for custom advice and consultation.

Frequently Asked Questions about Trade Finance for Seasonal Cash Flow

Is Trade Finance only available to large importers and exporters?

No, it is not. Trade Finance is used widely by small and medium businesses as well as larger companies. If you are a business-to-business company, you can access facilities scaled to the size of your purchase orders and trading relationships. 

Will I need to put up my house or commercial property as security?

Not necessarily. Both ScotPac’s Trade Finance and Invoice Finance facilities are secured against business assets such as purchase orders and accounts receivable, rather than fixed assets such as real estate.

Can Trade Finance be used for domestic stock purchases, not just imported goods?

Yes. While it’s commonly used for offshore suppliers due to the delay in shipping and delivery, Trade Finance can also fund local purchase orders. This flexible and customisable solution can help bridge the cash flow gap between paying a domestic supplier and getting paid by its own customers. 

What happens if peak season sales are slower than forecast?

Your working capital facility is structured around actual sales and invoicing, so we recommend discussing seasonal forecasts and repayment flexibility directly with your ScotPac lending specialist. That way you can ensure it matches realistic trading conditions before drawing down on funding. 

How is Trade Finance different from a standard letter of credit?

A letter of credit is one specific risk-mitigation tool utilised within an existing Trade Finance facility. A Trade Finance solution is a broader working capital arrangement where cash is provided directly against purchase orders, and alongside Invoice Finance. 

Related Stories