Import Trade Finance empowers Australian small and medium sized enterprises (SME) with a way to pay overseas suppliers, move stock faster, and protect working capital.
Whether capital is tied up in inventory, freight deliveries or even duties and GST, Import Finance provides a flexible avenue for funding importing stock but without draining cash flow.
If you need to fund imported stock, ScotPac Import Finance is here to help
Why do Australian importers run out of cash when stock demand is rising?
Australian importers engaging in international trade often face a timing mismatch: Cash outflow precedes cash inflow.
In other words, businesses need to pay for new stock inventory or materials, but only generate revenue once the goods arrive and can be sold.
In Australia, the gap in cash flow can be exacerbated by:
- Supplier deposits
- Freight times
- Customs duty
- GST
- Other import charges in many cases
As demand for stock increases, this can create a serious cash flow problem. Purchase orders from customers might be ready, and you may have a ready supplier on the cusp of manufacturing and shipping, but if you have run out of cash and don’t have enough free capital to pay upfront your business may need help.
Why does working capital matter so much for importers?
Working capital is the money your business has and uses to cover day-to-day obligations. It specifically refers to the cash left over after your account for current assets and current liabilities.
For importers, if that working capital gets locked up in orders and needed stock, the transit time and payment terms create gaps in cash flow faster than in many other industries.
That is why Trade Finance is not just about funding a purchase, as one might with a business loan. Rather it is about keeping the business operational while inventory moves along the supply chain and you sell your ordered goods to bring in revenue.
How can Trade Finance for importers help you fund imported stock?
Trade Finance helps importers access short-term working capital finance designed to bridge the gap between paying for stock and being paid by customers.
ScotPac’s Trade Finance solutions are designed to fund the initial costs of imported stock while keeping cash available for other operational expenditure, such as wages, marketing and overheads.
Please note: ScotPac’s Trade Finance facility is always operated in conjunction with an Invoice Finance facility. Speak to a lending specialist to understand how the two facilities work together for your business.
Import Trade Finance ensures that even Australian SMEs can maintain sufficient cash flow to engage with overseas or domestic suppliers, grow stock levels and enjoy extended payment terms.
Which Australian businesses use Import Trade Finance most effectively?
Australian importers tend to use Trade Finance due to their long stock cycles, need for large orders, and exposure to seasonal demand.
Trade Finance is particularly useful when you have to commit to (and therefore pay) overseas suppliers before stock is received and revenue generated.
Common industries for import Trade Finance include:
- Retailers with fast-moving inventory.
- Wholesalers needing large overseas orders.
- Manufacturers ordering components or raw material.
- Seasonal businesses with spikes in demand.
- Businesses expanding into new product lines or markets.
If your business needs to grow by buying additional stock ahead but cannot do so without the proportional growth in sales first, Import Finance Australia can help you scale sustainably without draining your cash reserves.
How does Import Finance support cash flow and reduce risk?
Import Finance improves cash flow by allowing you to retain necessary working capital for ongoing operations.
It reduces transactional friction by providing confidence for both the buyer and the seller. Trade Finance solves the timing, currency exposure and payment term stress, allowing for less pressure on importers needing to balance growth and liquidity.
What costs should importers plan for before bringing goods into Australia?
When pricing imported stock, SMEs need to factor in more than just the figure on the supplier’s invoice.
We recommend seeking professional advice, but some general costs to be aware of include:
- Supplier cost.
- Freight and insurance.
- Customs duty.
- GST on taxable importations.
- Import processing and related charges.
- Foreign exchange movement.
Knowing which of these costs apply to your trade and understanding how much these additional costs are likely to be will help you choose the right funding level and avoid underestimating the total cost.
How do you know if Import Trade Finance is right for you?
Are your stock purchases creating cash flow pressure?
Do you regularly pay suppliers before you are able to sell to customers?
Are you needing to place larger orders, import for seasonal increases in demand or have fast-moving stock?
If the answer is yes, import Trade Finance may be the right long-term working capital solution. After all, a customised Trade Finance solution is more than just cash flow alleviation, it supports sustainable growth.
Why choose ScotPac for Import Finance Australia?
ScotPac has supported Australian businesses for over 35 years. Our team of lending specialists have a lot of experience providing working capital solutions.
However, for Australian importers, there is no one-size-fits all Trade Finance solution. The right facility for you should fit your stock cycle, supplier terms, and growth plans, ensuring you have a sustainable pathway to long term success.
Speak to a lending specialist from Australia’s largest non-bank lender today and discover how we can customise a fast, flexible import Trade Finance solution for you.
