Companies involved in the importation of goods for sale are often faced with the challenge of mis-matched cash flows. That is, the offshore supplier may require payment up front, a letter of credit or at least a significant deposit, whilst their customers may pay 30 or 60 days after the goods have been imported and delivered. This means a

funding gap of up to 150 days from the time the goods were paid for to the time the customer finally pays.

This type of working capital pressure can be overcome utilising trade finance and in particular pre-shipment trade finance.

Pre-shipment Trade Finance

• Pre shipment trade finance allows for the payment of goods prior to shipment
• Can be structured to allow time for payment to be received by the importer's customer after delivery
• Can be secured by a mix of business and personal assets, including, property, debtors and stock
• Supplier payments via letter of credit or Telegarphic Transfer
• Bill facilities up to 180 days
• Flexible trade finance available in Australian dollars and other major currencies
• Principal and interest paid at the end of the trade finance period