Trade Finance
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Stratovestfinance > Trade Finance
Low Doc approval up to $250k
Rolling line of credit to pay your suppliers
Repayment period up to 120 days
Get 100% of supplier invoice financed
Option to pay in different currencies with competitive FX
What is a Trade Finance?
A trade finance limit is just opposite to an Invoice finance or Debtor finance limit.
A Trade finance limit enables you to pay your supplier upfront or in advance before receiving goods.
You can get up to 100% of your supplier’s invoice funded and have flexibility to repay up to 150 days term.
A trade finance is also called as supplier finance.
Our loan guide
Trade Finance
Loan amount
$100k- $150M
Interest rates from
9.99% p.a.
Loan term
Ongoing
Pre-approval time
24 hours – 72 hours
Unconditional approval & settlement time
7-10 days
Repayments
Gets settled against payment of invoices within 60-90 days
Security
Secured against current assets of the business No real estate security required
What you need to know
Can be used for
Buying stock/Inventory
Paying creditors
Other working capital needs
Documents required
Last 6-12 months bank statement.
Financial statements with Receivables/Payables ledger
Sample invoice with proof of delivery
ATO statements
A valid identification proof
Benefits
Get paid against invoices in advance
Can go higher funding without real estate security
Does not impact business leverage
*The information provided in
critical information sheet
is intended as a guide only. Please contact us for more information.
What you should know about Trade Finance
Have questions? Speak to our experts!
Why does a business need Trade Finance?
Generally, businesses who are heavily reliant on domestic or international suppliers, needs to have access surplus cash flow to procure timely orders.
Having a trade finance limit enables a business to make prompt payment or advance payment to the supplier which gives them the buying power to negotiate better pricing with discounts and timely delivery.
With a Trade finance limit, you get an option to pay back the lender up to 150 days which is a good time fame to liquidate the orders, payback the lenders and book profits.
What are the benefits of having a Trade Finance limit?
A trade finance facility can be beneficial to your business in several ways. Some of the key benefits can be listed as below:
- No real estate security required to avail trade finance
- Ability to pay suppliers in advance and get early payment discounts.
- Flexible repayment terms with interest free periods.
- Reduced payment, FX and international transaction risks.
- Helps to unlock the market potential with timely procurement of goods.
What documents are required to apply for a Trade Finance?
- 6-12 months Bank statements
- Management Accounts
- Receivables/Payables ledger
- ATO statements
- A valid Identification proof.
Why does a company need Trade Finance?
A trade finance facility may not be a suitable option for every business. However, it could be very useful for businesses involved in import and export of goods and services. A trade finance facility can be beneficial for both buyers and sellers.
For a buyer, generally paying for goods in advance becomes a big burden on the cash flow of the business and could witness several delays in procuring goods which can eventually impact the overall growth of the business. Having a trade finance facility helps them in making advance payment for goods to be imported and procure timely orders.
For a seller, exporting goods without receiving 100% advance may pose severe risk of default and hence they may not be comfortable dispatching the goods without receiving the full payment. A trade finance enables them to unlock cash flow from the manufactured goods in a much quicker time.
A trade finance facility not only helps to solve the liquidity problem for both buyers and sellers but also mitigates the risk in transactions involved in import/export of the goods between domestic and international trades.
How does a Trade Finance work?
1.Order goods from your domestic / overseas supplier
2.Present your supplier’s invoice to the lender
3.The lender pays the supplier’s invoice
4.Payback the lender on agreed terms of repayment.
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