Obtaining Trade Finance

In addition to traditional loan facilities you can choose from a range of short or long term trade finance solutions to fund your import or export transactions.

Trade finance  is designed to assist meet cash flow shortages arising from a mismatch in the timing of making payment for goods or raw materials for use in manufacture of goods, and the receipt of payments from the onselling of these purchased or manufactured goods.

Finance through trading terms for Importers
Trading terms with suppliers often give you some breathing space between the time you place the order and when payment is due. But if the supplier has significant bargaining power – a large number of buyers, a unique product, readiness to ship – they may demand payment in advance.

If you’re able to negotiate deferred payment as part of the trading terms, an interest cost is likely to be included in the agreement. And depending on the interest cost you may find trade finance a more attractive option.

Finance through trading terms for Exporters
If your buyer has substantial bargaining power – their good credit record, one of a small number of competing buyers – they may be in a position to demand and receive extended payment terms from you.

The result is that your cash flow needs to accommodate the period from the time you’re preparing the goods for shipment, up until when your buyer eventually pays.

Trade finance facility
Trade finance is designed to assist you to deal with the varying time differences, payment methods, creditor terms and individual transactions involved in international trade.

Using a Trade Finance Facility, you can incorporate one or more trade finance options into a single facility, giving you a complete solution for effective management of cash flow.

Important information about advice
Financial markets' products contain an element of risk: the level of risk varies depending on the product's specific attributes and how it is used. The Bank will enter transactions on the understanding that the customer has: made their own independent decision to enter into the transaction; determined that the transaction is appropriate; ensured they have the capacity to evaluate and understand the terms, conditions and risks, and is not relying on any communication or information from the Bank as advice.

View our Financial Services Guide (PDF 56kb). 

Other important information
Applications for finance are subject to credit approval.