Trade finance: how it works in Australia
Pay suppliers now, repay when the goods sell
Trade finance pays your supplier now and lets you repay when the goods have been sold, typically within 90 to 180 days. ScotPac publishes funding of up to 100% of the order value for up to 150 days, and Fifo Capital facilities up to $5M with terms to 180 days. Each drawing is tied to a specific purchase, so the stock it funds is what repays it.
Trade and invoice finance providers a broker can compare
Specialist working capital providers in our directory. The banks and Fifo Capital's published trade terms are in the table below.
| Lender | Products | Current rate |
|---|---|---|
| EarlypaySpecialist | Products:
| Current rate: Ask a broker |
| Octet FinanceSpecialist | Products:
| Current rate: Ask a broker |
| ScotPacSpecialist | Products:
| Current rate: Ask a broker |
Inclusion is editorial reference, not a recommendation. Rates change often, so we only show a rate we captured from the lender's own page in the last 60 days, with a link to that page; otherwise we link to the lender's rate card where it publishes one. The broker you are matched with compares the lenders on their own panel.
See all 22 business loan lenders- Pays overseas or domestic suppliers up front and is repaid from your sales, usually within 90 to 180 days
- Published facility terms: ScotPac funds up to 100% of the order value for up to 150 days; Fifo Capital offers facilities to $5M with terms to 180 days; Westpac matches the term to the transaction, capped at 180 days
- The banks provide it through letters of credit, documentary collections and trade advances, mostly for existing business customers
- Suits businesses that buy stock ahead of sales, importers paying at sight, and exporters waiting on overseas buyers
- Not the tool for general cash flow: invoice finance funds sales already made, a line of credit funds anything
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are calculated on a secured loan of $150,000 over 25 years for home loans, a loan of $30,000 over 5 years for car and personal loans, and $50,000 over 5 years for equipment finance, unless the lender states another basis.
What is trade finance?
A facility that funds the purchase of goods, usually from an overseas supplier, and is repaid when those goods are sold. The lender pays the supplier, or issues an instrument such as a letter of credit that guarantees payment, and you repay the lender on an agreed date, typically 90 to 180 days later.
Because each drawing is tied to a specific purchase order or shipment, the facility is self-liquidating: the stock it funds is what repays it. That is the difference between trade finance and a general business loan, and it is why lenders will often fund a higher proportion of a trade transaction than they would lend unsecured.
Which lenders offer trade finance, and on what terms?
Checked against each lender's published page on 20 September 2026. Terms change without notice; confirm the current position with the lender or your broker before relying on it. Where a lender does not publish a figure the cell says so.
| Lender | What is funded | Facility size | Term | Other published terms |
|---|---|---|---|---|
| ScotPac | Purchase of goods or raw materials from overseas or domestic suppliers, for importers and exporters | Not published on the page | Up to 150 days | Up to 100% of the order value; tailored repayment terms; specialists negotiate supplier terms with you |
| Fifo Capital | Purchases from international and domestic suppliers | Up to $5M | Extended trade terms up to 180 days | Sits alongside its invoice finance (to 80% advanced) and short-term loans |
| Westpac (corporate) | Import and export transactions | Not published | Fixed term matched to the transaction, not exceeding 180 days | Importers can pay suppliers at sight to capture discounts; exporters get pre-shipment finance up to 30 days and post-shipment to 180 days in total |
| ANZ | Import and export finance suite; trade and supply chain specialists | Not published | Not published | A national Trade Finance Desk and online trade banking; terms are set per customer |
| NAB, CommBank | Import letters of credit, documentary collections and import/export trade advances, operated through their business banking platforms | Not published | Not published | Documented in their product guides rather than a public product page |
| Octet | Supplier payments platform | Not published | Not published | Terms not published on the public page |
How does an import trade finance transaction work?
- You agree the order with the supplier.
- The lender either pays the supplier directly on your behalf or issues a letter of credit, which is the lender's promise to pay once the supplier presents shipping documents that match the order.
- The goods ship and clear customs, and you sell them.
- On the agreed date (ScotPac publishes up to 150 days; Fifo Capital and Westpac up to 180) you repay the amount advanced plus the facility cost.
Paying the supplier at sight rather than on 60-day terms often earns a discount that covers part of the facility cost, which Westpac notes as a benefit for importers.
How does export trade finance work?
The exporter's problem is the mirror image: goods are made and shipped before the overseas buyer pays. Westpac publishes pre-shipment finance of up to 30 days, funding production before the goods leave, and post-shipment finance of up to 180 days in total while the buyer's payment is outstanding. A letter of credit from the buyer's bank can also be used as security, so the exporter is paid on presenting documents rather than waiting on the buyer.
What does trade finance cost?
Lenders price it per transaction and do not publish rates. The cost has three parts: a facility or establishment fee, an interest or discount charge for the days the funds are outstanding, and transaction fees for instruments such as letters of credit.
Because the charge runs only for the days outstanding, it is a fraction of an annual rate. As an illustration only, at 10% p.a. the interest on $100,000 is about $2,466 for 90 days and $4,932 for 180 days, before fees. The economics work when the margin on the goods, plus any supplier discount for early payment, exceeds that cost; ask for the all-in cost per $100,000 funded for your typical cycle rather than a headline rate.
Is trade finance the right product?
It is the right product when the money is needed to buy goods that will be sold, especially from overseas suppliers who want payment before shipping. It is the wrong product for general cash flow: if the gap is customers paying you late, invoice finance funds the sales you have already made; if the need is irregular and not tied to purchases, a line of credit or overdraft is simpler. Many importers run trade finance and invoice finance together, one funding the purchase and the other the sale.
Keep reading
Related guides.
Trade finance FAQs
What is trade finance in simple terms?
Is trade finance risky?
How long are trade finance terms?
How much of an order will trade finance cover?
What is the difference between trade finance and invoice finance?
Do I need to be an existing bank customer for trade finance?
Paying suppliers before your customers pay you?
Answer a few quick questions and a licensed business finance broker will match your import or export cycle to the trade finance providers whose terms fit, or tell you if invoice finance is the better tool. Free to use, no obligation.