Unlocking Opportunity | Understanding Risk
From identifying quality manufacturers and suppliers in a foreign country, to dealing with regulations and processes that vary wildly, or knowing the nuances of how to negotiate with specific cultures; there is a significant amount of complexity & risk to deal with everyday in Importing & Exporting.
Having the right finance facilities in place to support these complexities and risks is paramount.
Structured poorly and the best outcome is growing with the handbrake on. The worst outcome is complete business financial failure.
The AUD is the most volatile major currency in the world (remember when it dropped 13c in 9 weeks in 2013, or when it bottomed at 48.5c in March 2001?!).
We help our clients with:
- Spot Trades at lower margins than Bank rates
- Forward Exchange Contracts (“FEC”) to hedge against future exchange rate movements.
After your DocLC is called upon, these debt facilities will finance the cost of your inventory until such time as you get paid (or drawdown on Invoice/Debtor Finance).
Available in AUD as well as Foreign Currencies.
Letters of Credit
- Documentary Letters of Credit (“Doc LC”)
- Standby Letters of Credit (Cross-Border Bank Guarantees)
Used effectively, “LCs” can significantly reduce risk & costs whilst making processes more efficient.
Foreign Currency Loans & O/D
If you are acquiring fixed assets in foreign currencies and/or have regular foreign revenues & expenditures, it may be appropriate to consider borrowing, or operating an Overdraft, in that currency.
If you’re looking to import specialised machinery or equipment that is not available from Australian distributors, Asset Financiers will often leave you hanging for the import transaction. An “import lease” structure marries the import & long-term debt to effectively & efficiently fund the entire transaction.
We’re not just finance brokers. We are career commercial bankers with significant experience in international trade financing; leveraging that experience, we provide our clients with strategic advice.
Our Experience in International Trade
Below is a snapshot of just a few varied international trade transactions we have completed.
Refinance & restructure of funding lines including Working Capital, FX hedging, Letters of Credit & Trade Finance, Term Debt for commercial property portfolio.
Business Turnover $60m
Funding package $20m
Offshore Civil Contract
Australian asset-backed Standby Letter of Credit to support project retentions for large civil works contract overseas, together with Foreign Exchange Contracts to protect AUD profit margins.
Facility limit A$6m
"Import Lease", comprising Euro-denominated Documentary Letter of Credit, EUR/AUD Forward Exchange Contract, short-term AUD-denominated Trade Finance and AUD term-debt Asset Finance for import of a €3m (Euro) industrial printer.
Importer & Wholesaler
Trade, Debtor and Term Debt facilities to assist with rapid multi-year growth and on-going operational requirements
Funding Package $8m
Multiple facilities for the import and financing of yellow-goods machines. Forward Exchange Contracts to lock in AUD value of purchase price, Trade Finance during import, then long-term Lease/Hire Purchase finance.
Facility limit $3m