We can provide Trade Finance to importers and exporters for both pre and post shipment finance. We can also help exporters with their working capital requirements by advancing funds against Export Finance Insurance Corporation (EFIC) guarantees. The Export Finance Insurance Corporation (EFIC) is a government statutory body with which our board of lenders holds established arrangements.
The instrument used to facilitate the finance of equipment for overseas suppliers is called a ‘Letter of Credit’. It is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services. The seller then seeks reimbursement from the buyer or from the buyer’s bank.
The document serves essentially as a guarantee to the seller that it will be paid by the issuer of the letter of credit regardless of whether the buyer ultimately fails to pay. In this way, the risk that the buyer will fail to pay is transferred from the seller to the letter of credit’s issuer. The letter of credit also ensures that all the agreed upon standards and quality of goods are met by the supplier.
Letters of credit are used primarily in international trade for large transactions between a supplier in one country and a customer in another.
In many cases, an overseas supplier will require a letter of credit to confirm payment for goods prior to shipment. We have a wealth of experience in this field – in fact, our lenders have been issuing letters of credit to local and overseas suppliers for decades. We also process letters of credit issued to export customers by overseas banks.
The big advantage for you is that our suite of Trade Finance lenders has teams of staff ready to assist you with international transactions throughout Australia.
So take the fuss out of international purchases and leave it our team to set the finance for the deal. This will enable you and your business to capitalize on opportunities and focus on growing your business.
Check out our Commercial Finance Page for all our commercial finance options.
Check out our Import Finance Case Study.
Contact Us 02 9453 0300 for the best Trade Finance deals today.