Fund stock between order and payment
Trade finance that pays your suppliers so your stock keeps moving.
Fund purchase orders and import shipments across 18+ lenders. Your broker explains the drawdown period, fees and FX treatment before you commit.
What is a trade finance?
Trade finance is a revolving facility that pays your suppliers for goods at the time of order and gives your business 60–180 days to repay, bridging the gap between paying for stock and being paid for it. It covers both imported and domestic purchases.
Importers and wholesalers carry the longest working-capital cycle in business: pay a supplier on order, wait weeks for shipping and customs, hold the stock, sell it on 30-day terms, then wait to be paid. Ninety to a hundred and fifty days can pass between money leaving and money returning. A trade facility covers that entire window by settling with the supplier upfront and taking repayment when the sales proceeds actually arrive.
Facilities are usually revolving: an approved limit that recycles as each drawdown is repaid, so a $500,000 limit can support well over a million dollars of annual purchasing. Lenders assess supplier quality, the goods themselves, your sales history and debtor concentration. Many facilities pair naturally with invoice finance, funding the stock at one end and the receivable at the other.
Costs come as a drawdown fee, an interest rate on the outstanding balance, and — for imports — foreign exchange margin and any letter of credit charges. Your broker sets out the all-in cost per shipment rather than the headline rate, because on a 120-day cycle the fees usually matter more than the interest.
Trade finance at a glance
| Amount | $50,000 – $5,000,000 |
|---|---|
| Term | 2–6 months |
| Rate type | Variable |
| Indicative rates (Q3 2026) | 9% – 20% p.a. · see rate history |
| Security | Secured by receivables |
| Repayments | Each drawdown repaid in full at the end of its term |
| Typical speed | 1–3 weeks to establish, then 24–48 hours per drawdown |
| Best for | Importers, wholesalers and distributors with proven sales and reliable suppliers |
| Consider something else if | Service businesses with no stock, or one-off purchases that do not justify a facility |
| Tax | Interest and facility fees on trade borrowing are generally deductible. Confirm with your accountant. |
Advantages
- Pay suppliers upfront and often negotiate better pricing
- Revolving limit recycles with each repayment
- Works alongside invoice finance to cover the full cycle
Trade-offs
- Fees and FX margin can exceed the headline interest cost
- Unsold stock still has to be repaid on schedule
- Establishment takes longer than a straight business loan
How to apply for a trade finance
- 01
Map the cycle
Purchase orders, supplier terms, shipping times and how long customers take to pay after delivery.
- 02
Set the limit and terms
Your broker matches limit, drawdown period and fee structure to that cycle across trade-capable lenders.
- 03
Draw per shipment
Present the supplier invoice, the financier pays, and the drawdown is repaid from sales proceeds.
Documents lenders commonly ask for
- Aged receivables and aged payables reports
- Supplier agreements and sample purchase orders
- Financials, bank statements and ATO portal statement
Lenders we compare for this
ScotPac, Moneytech, Finstro, Westpac and others on our panel. See the full panel.
Estimate your repayments
- Number of repayments
- 6
- Total interest (est.)
- $2,981
- Total repaid (est.)
- $77,981
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is trade finance?
Trade finance is short-term funding that pays a supplier for goods at the point of order or shipment, with the borrower repaying the financier once the goods are sold. It is typically a revolving limit with drawdown periods of 60 to 180 days.
What is a letter of credit?
A letter of credit is a bank undertaking to pay an overseas supplier once specified shipping documents are presented. It gives the supplier payment certainty and gives the buyer assurance that payment only happens when the shipment is properly documented.
Trade finance vs invoice finance
Trade finance funds stock before you sell it; invoice finance funds the receivable after you have invoiced. Importers frequently run both, so the facility covers the full cycle from purchase order to customer payment.