If you are an Australian-based business trading internationally or domestically, ScotPac Trade Finance can help close the cash flow gap between paying suppliers and receiving customer payment.
So what do you actually need to apply?
The documents usually come back to 3 things:
- who you and your business are
- whether your business can repay the facility
- whether the underlying trade transaction is genuine and ready to proceed
What documents do you need to apply for Trade Finance?
The documents needed for a Trade Finance application will depend on your business, facility structure and the trade transaction being funded.
As a general guide, your application may include:
- identity documents
- business registration documents
- financial records
- transaction-specific paperwork
- debtor or receivables information, if Invoice Finance is part of the structure
What are business and identity documents?
These documents confirm who you are and verify your business.
They may include your company registration details, such as records from the Australian Securities and Investments Commission (ASIC), along with your ABN and ACN if your business is a company.
You will also generally need personal identification documents for owners, directors and guarantors.
What financial documents are required?
Financial documents help ScotPac understand your trading position and ability to service the facility.
These may include:
- financial statements
- management accounts
- aged debtor or aged creditor reports
- business bank statements
- details of existing finance facilities or Asset Finance commitments
The exact documents needed will depend on how long you have been trading, the facility size and the complexity of the transaction.
What is meant by trade-specific documents?
Trade-specific documents relate to the actual transaction you want funded.
Examples can include:
- a purchase order
- a proforma invoice
- a supplier invoice
- a supplier agreement
- shipping, customs or landed cost information, where relevant
- buyer or customer order details, where relevant
These documents help ScotPac understand the goods, supplier, customer, payment terms and timing of the trade cycle.
Do you need documentation for an Invoice Finance facility as well?
Sometimes.
Some Trade Finance facilities are structured alongside Invoice Finance, while others, such as Tradeline, may be used without an Invoice Finance facility. A ScotPac specialist can confirm what applies to your business.
Where Invoice Finance is part of the structure, you will usually need to provide debtor or receivables information, such as an aged receivables listing or debtor ledger.
Invoice Finance helps unlock cash tied up in unpaid invoices. When used with Trade Finance, it can support both sides of the cash flow cycle – paying suppliers on the purchase side and accessing customer payments sooner on the receivables side.
What financial records do lenders ask for?
ScotPac will usually look for recent, accurate financial records that show how your business trades and how the facility will be repaid.
To help your Trade Finance application go as smoothly as possible, it is worth gathering:
- financial statements for the last 2 years, such as profit and loss and balance sheet reports
- interim or year-to-date management accounts
- business bank statements for the last 6 months
- aged debtor and aged creditor reports
- details of existing finance facilities or Asset Finance commitments
You may not need every document in every case, but having these ready can help reduce delays.
What if you do not have all the documents as a newer business?
If you are a newer or fast-growing business, it is okay if you do not have years of financial documents behind you.
ScotPac can assess your application on broader factors as well, including your cash flow, supplier relationships, customer base, trade cycle and supporting documentation.
If Trade Finance is not the right fit yet, another ScotPac working capital solution may be more suitable.
Do you need purchase orders or supplier agreements?
Usually, yes.
A confirmed purchase order, proforma invoice, supplier invoice or supplier agreement can be an important part of a Trade Finance application because it provides evidence of the transaction being funded.
A lender like ScotPac will generally want to understand:
- what goods are being purchased
- who the supplier is
- the agreed price, quantity and delivery terms
- who the buyer or end customer is, where relevant
- who is responsible for shipping, insurance and duties
- when repayment is expected to occur
If your business trades internationally, import and export requirements can vary, so it is worth reaching out to ScotPac early for tailored guidance.
How long does approval take once documents are in?
The more complete and clear your documentation is, the easier it is to assess your application.
If you have the right documentation ready, many Trade Finance applications can often be assessed in a matter of days.
Timing will depend on:
- whether your initial submission includes the necessary documents
- how complex the trade structure is, such as a single shipment or a multi-supplier arrangement
- the quality and clarity of your debtor book, if receivables are part of the facility
- whether your business already has a relationship or facility with ScotPac
Apply for a tailored Trade Finance solution today
ScotPac combines the speed and flexibility of a specialist lender with more than 35 years of experience supporting Australian businesses.
Start your Trade Finance application online today, or speak to a ScotPac lending specialist about the documents your business may need.
