Financing options

As an exporter you want to be able to receive funding as soon as possible to assist with your cash flows. There are several solutions available to help you with your funding requirements.

Foreign bills negotiated

Foreign bills negotiated provides you with access to short-term finance in the currency of export documentation. This option is available to exporters who use the documentary collection process and have an approved trade finance facility.

The facility allows you to reduce foreign exchange risk by borrowing the foreign currency amount of your invoice and converting the proceeds of the loan to local currency immediately. Because the loan remains in a foreign currency, you may also benefit from cheaper interest rates.

Trade advance

A trade advance provides short-term finance for export transactions. This form of finance assists you to obtain the finance you need to be able to provide the goods or service to the importer.

Australian dollar trade advance

This is a fixed term, fixed interest rate loan available in Australian dollars (AUD). Although denominated in AUD, the amount you pay a supplier may be in either a foreign currency or AUD. It is best suited to medium-value transactions that are cleared in the short term.

Foreign currency trade advance

This is similar to the Australian dollar trade advance, except that your finance is provided in a foreign currency which is generally the same as the currency that is due to the supplier.

Without recourse export finance

This facility offers advance payment to exporters, irrespective of whether the issuing bank or the buyer makes final payment. It allows you to supplement cash flow and free up other loan facilities, as well as remove debtors from the balance sheet.

It also minimises risk, as the negotiating bank assumes credit risk and transfer risk when it agrees to grant finance on a without recourse basis. These risks are ordinarily assumed by the exporter.

Trade finance facility

A trade finance facility helps you meet your cash flow shortages arising from a mismatch in the timing of payments for goods or raw materials, and the receipt of payments from the selling of manufactured goods.

A trade finance facility allows you to incorporate one or more trade finance options into a single package, giving you a complete solution for effective cash flow management.

Insured export finance

Insured export finance is a loan or a series of loans against your receivables, which are secured by a Trade Credit Insurance policy.  The insurance policy is assigned to the Bank.  Loans are drawn down on the presentation of a request, an invoice and proof of shipment such as a Bill of Lading.

This facility provides you with the comfort of fixed interest rate loans in the currency of their sales.

 

• Important information
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on this advice, consider its appropriateness to your circumstances. Product Disclosure Statement issued by Commonwealth Bank of Australia ABN 48 123 123 124 for Foreign Exchange Service is available on request and should be considered before making any decision about this product. Applications for finance are subject to the Bank’s normal credit approval. Full terms and conditions are included in the loan offer. Bank fees and charges are payable. 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 59kb).
  
  If you have a complaint, the Bank’s dispute resolution process can be accessed on 13 2221.