Trade Finance

Trade Finance is a working capital solution that helps fund the purchase of goods, stock, inventory and raw materials, typically covering the period between paying a supplier and being paid by your customers.

It can support both cross-border and domestic trade.

For importers, Trade Finance can provide funding to pay overseas suppliers, helping bridge the gap between paying for goods, receiving them, selling them and collecting payment.

For exporters, it can help fund production and shipping before payment arrives from an overseas buyer.

Yes. Some ScotPac Trade Finance facilities work alongside Invoice Finance, so Trade Finance supports the purchase side and Invoice Finance releases cash tied up in the resulting invoices.

If your business needs to fund supplier purchases but Invoice Finance is not the right fit, Tradeline may be a separate option.

A ScotPac lending specialist can talk through your suppliers, customers and trade cycle, then recommend the structure that fits your business.

Established Australian businesses that buy stock, inventory or raw materials from suppliers and sell to business customers on standard trade credit terms may be eligible.

Security requirements depend on the facility structure, but Trade Finance is typically linked to the trade transaction, goods and receivables rather than assessed in the same way as a standard property-backed business loan.

Importers often face suppliers who want payment before or on shipment, while their own customers pay much later.

Trade Finance can help cover that gap, so the business is not out of pocket while goods are in transit. It can also help importers accept larger orders, maintain stock levels and negotiate bulk or early payment discounts.

Exporters can face a similar timing problem in reverse, where production and shipping costs need to be covered before payment arrives from an overseas buyer.

Trade Finance can help fund that gap, making it easier to fulfil larger international orders and manage the cash flow impact of export payment terms. A Letter of Credit can also help provide reassurance where the trading relationship is new.

Depending on the transaction and supplier relationship, ScotPac can support payment methods including Telegraphic Transfer, Letter of Credit and Documents Against Payment.

A specialist can recommend which option suits your supplier arrangement and trade cycle.

ScotPac can support supplier payments in AUD, USD and other currencies. If your supplier requires a specific currency, raise it early with your specialist.

Yes. ScotPac has trade advisors based in Guangzhou, China, to support Australian businesses buying from Chinese suppliers.

At ScotPac, Supply Chain Finance generally refers to Trade Finance and Invoice Finance working together to support the full cycle, from paying your supplier through to collecting from your customer.

Trade Finance supports the buying side of the cycle, while Invoice Finance releases cash from the invoices you raise once the goods are sold.

Trade Finance works differently from a standard term loan. It is a facility used to fund specific trade transactions, with repayment structured around the trade cycle and customer receipts.

The cost depends on the type, size and duration of your facility, as well as your business, suppliers, customers and trade cycle.

Speak to a ScotPac lending specialist for a quote tailored to your business.

Fill in the enquiry form on this page or call ScotPac on 1300 850 322.

A lending specialist will work through your suppliers, customers and trading cycle, and can connect you with our trade advisors in Australia or China if you need support with an international supplier.