Trade & Invoice Finance

Manage your cash flow through Trade & Invoice Finance

Invoice and trade finance are crucial financial products for businesses, particularly those involved in trade. Invoice financing allows businesses to access funds tied up in unpaid invoices by selling them to a third-party lender, while trade finance provides a range of services to facilitate both domestic and international transactions. These options can help manage cash flow, mitigate risks, and support business growth.

.

Key Features of Trade Finance:

• Definition: Trade finance encompasses a range of financial products and services designed to support trade transactions, including both imports and exports.

• How it works: Trade finance solutions can include letters of credit, guarantees, and other instruments that facilitate payments, manage risks, and optimize cash flow for businesses involved in trade.

• Benefits: Mitigation of payment and performance risks, access to working capital, and streamlined trade operations.

• Examples: Banks offer trade finance to help businesses meet working capital needs for import, export, and domestic trade.

• Types: Trade finance often involves managing the complexities of international transactions, including documentary trade and currency exchange.

.

Key Features of Invoice Financing:

• Definition: Invoice financing, also known as debtor financing or accounts receivable financing, is a short-term funding solution where businesses sell their outstanding invoices to a finance company.

• How it works: Instead of waiting for customers to pay, businesses receive an advance (often around 80%) of the invoice value, with the remaining amount (minus fees) paid once the customer settles the invoice.

• Benefits: Improved cash flow, access to funds for immediate needs, and reduced reliance on traditional lending.

• Examples: Banks offers invoice and debtor finance, providing quick access to funds and helping manage cash flow fluctuations.

• Types: Invoice factoring (where the finance company manages collections) and invoice discounting (where the business manages collections) are common variations.

.

We're a proud member of the Mortgage and Finance Association of Australia and can help with Asset Finance right across Australia. If you're looking to grow your business, we have the expertise and experience to guide you through the process and make the right choice.