Exporting ties up your cash for longer
Selling overseas usually means waiting longer to be paid. Export payment terms commonly run from 30 to 120 days, and that clock often starts after the goods have already been produced, packed, shipped and cleared.
By the time the money arrives, you have carried the cost of the order for months. Wages, suppliers, freight and the next production run do not wait with you.
The solution: Export Finance
Funding after you ship
Submit your export invoice once the goods are shipped and access up to 80% of eligible invoice value.Built for foreign currency
Invoice in AUD, USD, GBP, NZD, EUR or CAD. Your facility is structured around the currencies you actually trade in.Specialists in international trade
Incoterms, shipping documents and overseas debtor checks are business as usual for our team.Why choose ScotPac Export Finance
Without a facility built for exporting, most businesses cover the gap one of 2 ways: they fund it from their own cash reserves, or they borrow against something else, often a term loan, and carry fixed repayments while they wait to be paid. Both work until the orders get bigger. Export Finance is structured around the invoices and the trade cycle itself, so the funding moves with your sales rather than against a fixed schedule.
When do I get the cash?
After shipment and invoicing, rather than waiting out 30 to 120 day export terms.
Your own cash goes out first, or a lump sum is drawn and repaid regardless of when customers pay.
What currencies are supported?
AUD, USD, GBP, NZD, EUR and CAD, so foreign currency invoices sit inside the facility.
Generally, AUD borrowing, with currency exposure managed separately.
What happens as export sales grow?
Funding can be structured around your eligible export ledger as it grows.
Reserves get stretched, or you apply again for more funding.
How are repayments handled?
Settled as your overseas customers pay the funded invoices.
Fixed instalments are due whether or not you have been paid.
Is it built for export?
A general facility not specifically structured for export cycles.
Export Finance in action
The situation
A family-owned food manufacturer in Melbourne had been supplying Australian supermarkets and independent grocers for over a decade. Demand from Asia had been building steadily and the business landed distribution agreements with wholesalers in Singapore and Hong Kong.
It was the growth they had been working towards, but it came with a cash flow problem. The overseas distributors wanted 90+ day terms, and the business had to fund the ingredients, production runs, packaging and freight months before any of that money came back.
The solution
ScotPac structured a $1.2 million Export Finance facility alongside the business’s existing domestic Invoice Finance facility, funding receivables in both AUD and USD.
As each container shipped and the export invoice was raised, the business could draw against it rather than waiting on overseas settlement.
As a result, cash started coming back into the business within days of shipping rather than a quarter later, which funded the next production run instead of stalling it.
Award winning Business Finance
ScotPac is Australia’s largest specialist provider of working capital solutions. We combine the experience of a major finance provider with the speed and flexibility of a specialist lender, backed by a team that understands international trade.
Frequently Asked Questions
What is Export Finance?
Export Finance is a receivables facility for Australian businesses selling to overseas customers. It gives you early access to up to 80% of the value of eligible export invoices, rather than waiting the full export payment term.
How much of my export invoice can I access?
ScotPac may advance up to 80% of eligible export invoice value.
Which countries can I export to?
ScotPac funds export receivables where the goods have been exported to approved countries. The approved list covers many of Australia’s major trading partners across Asia, Europe, North America, the UK, New Zealand and the Pacific. Your specialist can confirm whether your specific markets are covered
What currencies can I invoice in?
Export invoices can be issued in AUD, USD, GBP, NZD, EUR or CAD. If you invoice in a currency outside this list, raise it early with your specialist.
Will my overseas customers know I am using Export Finance?
Yes. Export facilities are disclosed, which means your overseas customer is made aware that the invoice has been assigned to ScotPac and is asked to pay ScotPac directly. In practice this is a standard arrangement in international trade, and your ScotPac specialist will walk you through the notification process before the facility goes live, so there are no surprises for your customer.
Do I need cargo insurance?
Yes. Clients are required to hold a current marine cargo or goods in transit insurance policy. This protects both your business and the funded receivable while the goods are in transit.
What documents do I need to submit?
Alongside your export invoice, ScotPac will generally ask for shipping documentation such as a Bill of Lading or Air Waybill. Export terms of sale, the agreed Incoterm, insurance confirmation and release of goods are also reviewed as part of the assessment.
Can I use Export Finance for domestic sales invoiced in a foreign currency?
In some cases, yes. Although the facility is primarily for exporters, it can also support sales to customers located in Australia where the invoice is not denominated in Australian dollars. Speak to a specialist about your specific arrangements.
Can I get funding before I ship?
Export Finance supports the receivables side of the cycle, once goods have shipped and invoices are raised. If you also need funding earlier, to pay suppliers or fund materials before an export order goes out, Trade Finance can work alongside your facility.
How much does Export Finance cost?
Pricing depends on your turnover, your overseas customer profile, the markets you sell into, the currencies involved and your facility structure. A ScotPac lending specialist can provide a quote tailored to your business.
Can I offer overseas customers longer payment terms?
Often, yes. Because funding is linked to invoices you have already raised rather than to when your customer actually pays, Export Finance can give you more room to offer competitive terms and win business internationally. Speak to a specialist about what would work for your buyers and markets.