Export and import trade finance solutions at ANZ help manage your business's cash flows more effectively and mitigate risk.

The following ANZ trade solutions may assist in managing cash flow

Trade Finance Loans (AUD or foreign currency) to facilitate open account transactions

A trade finance loan is an advance denominated in either domestic currency or the foreign currency of the payment obligation, enabling exporters/importers to finance their trade commitments on a transactional basis. A trade finance loan must be subject to a genuine underlying trade transaction evidenced by appropriate trade documentation.

An open account method is used to settle import and export transactions between two international trading parties. Clearance of outstanding balances on the account is at mutually agreed periods. This payment method requires absolute trustworthiness on behalf of both parties. The risk is with the exporter under this type of open account transaction.

Pre-payment

This method requires a payment to be made to the exporter before goods are shipped. Usually telegraphic transfers are used by the importer (buyer) to deposit money into the account of the exporter (seller) prior to shipment date. The risk is with the importer under this type of open account transaction.

Documentary Collections

Documents relating to an export of goods are forwarded through the banking system to the overseas buyer in exchange for payment. The payment collection may occur either at ‘sight’ (when the customer sees the documents – known as a Documentary Payment) or at ‘term” (at an time agreed in the future where a Bill of Exchange is crucial – known as a Documentary Acceptance).

Documentary Letters of Credit

This may be defined as a formal undertaking, issued by a bank, engaing to honour drawings provided certain requirements, which it contains, are complied with. Typically used by buyers and sellers that are yet to establish a strong relationship. The Buyers require a prearranged documentary credit facility with their bank.

Bills Negotiated Not Under Credit (BNNUC)

BNNUC is a financing product, whereby an export customer may request ANZ to finance/discount a bill* (provide liquidity) and dispatch the export documents (along with the bill*) to a correspondent bank in the buyer’s country for collection and return of proceeds in terms of the customer’s and ANZ’s instructions. Documents will be released to the buyer against payment or acceptance of the bill.

ANZ's trade risk management solutions are used where one party to a transaction wants a financial 'guarantee' to support an individual or series of transactions, and this provides confidence that contractual obligations will be honoured, solutions include

Bank Guarantees

A bank guarantee is an agreement by ANZ to pay a specified amount to a specified third party (principal) on behalf of our customer. This enables our customer to enter trade or financial arrangements without the need to outlay cash (or security) to satisfy conditions dictated by a trade or financial contract.

Standby Letters of Credit

Standby Letters of Credit are payment guarantees, by the bank, to a beneficiary. This product is requested by a seller or a service provider as a back-up for another transaction.  It can only be activated in case of non-performance or default of the underlying transaction and hence differs from the traditional irrevocable Documentary Letter of Credit.

Documentary Letters of Credit

This may be defined as a formal undertaking, issued by a bank, engaging to honour drawings provided certain requirements, which it contains, are complied with. Typically used by buyers and sellers that have yet to establish a strong relationship. The Buyers require a prearranged documentary credit facility with their bank.

Bid Bonds

It is common business practice when tendering for large capital projects for the tenderer to be supported by a Bid Bond. The Bid Bond is an indication of the applicant company's ability to carry out the work being tendered for.

Performance Bonds

Most capital works projects put out to tender require the successful tenderer to lodge a Performance Bond after being awarded the contract. The Performance Bond is an indication that the applicant company has the necessary skills and capabilities to carry out the required work and comply with the agreed terms and conditions of the contract.

For more information

Trade finance desk (turnover <$5m) Business Bank (turnover $5m-$40m) Corporate and Institutional Bank (turnover $40m+)

1300 ANZ 4 TRADE

Business Direct Centre
Ph: 1800 801 485 - 8am-8pm (AEST) weekdays

Ph: 1300 883 798
Intl: +61 3 9601 1260