A loan for import and export (also known as a trade finance loan) is a form of short-term working capital finance that allows both exporters and importers to finance their trade commitments on a transactional basis. Each trade transaction must be evidenced by appropriate trade documentation.
A trade finance loan can be used to support both domestic and cross-border trade transactions and is an advance of funds in either the domestic or foreign currency of the payment obligation.
Loans for import and export can be provided on a pre-shipment or post-shipment basis in order to match the importer’s or exporter’s financing requirements at the different stages of the trade transaction.
Benefits for importers
- Access to funding/liquidity to match the exporter’s sales terms, or as required where an exporter’s sales terms are not sufficient
- Potential to negotiate better commercial terms with exporters (e.g. reduced costs) and benefit from any early payment discounts offered by exporters
Benefits for exporters
- Access to funding based on proven orders for the production and supply of the goods to importers
- No missed business opportunities where importers require longer credit periods
For more information on how ANZ can help you grow your business internationally please visit the ANZ Be Trade Ready site.