Financing options

As an importer, extended payment terms can assist you with managing your cash flow.  There are several solutions available to help meet your business needs.

Trade advance

A trade advance provides short-term finance for import transactions. This form of finance may be cheaper than accepting deferred payment terms from your suppliers, as a supplier may load an interest cost into their price of goods sold to you.

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.

Trade finance facility

A trade finance facility helps you meet 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.

Equipment import finance

Equipment import finance is a working capital solution that provides for all your trade and related asset finance requirements. It is suitable for businesses that need to invest in capital equipment or that require a combined facility offering foreign exchange, import finance and asset finance solutions.

The equipment import finance facility includes import documentary credit, trade advances, hire purchase, equipment loans and finance leases.  

This facility provides for all aspects of manufacture, import, commissioning, payment and long-term asset finance. It also facilitates payment to offshore manufacturers in any approved currency, allows foreign exchange and interest rate hedging, and provides pricing certainty.

• 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.