Export Finance with ScotPac.

Like Invoice Finance, Exporters Finance unlocks the value tied up in your invoices, giving your business the working capital it needs to grow.

In a standard international transaction, the exporter will agree on net payment terms with the buyer. These terms can vary in length from 30 to 120 days.

For the exporter, this means they will have to wait up to 120 days to receive payment after making a sale and shipping the goods.

With an Export Finance funding facility, the exporter can submit the sales invoice to the finance company and receive a large percentage of the invoice value upfront as a cash advance.

You can get paid faster for the goods you have already sold.

Once the invoice is due, the finance company will collect the payment directly from the importer and transfer the remaining invoice balance to the Australian exporter less fees.

Trade Finance is an umbrella term that includes financial products designed to help both importers and exporters. These financial products can include Invoice Finance, Payment Against Documents, Letters of credit, and other funding tools and support to facilitate a financial transaction between businesses. Trade Finance can be used to support both international and domestic trade.

Export Finance Australia refers to the financial products designed to help businesses in Australia that sell their goods and services to overseas clients. Export Finance is specifically designed to release capital that is tied up in international transactions and support the cash flow needs of companies that sell to international markets. It helps businesses in Australia to grow and increase their sales volume to overseas customers.

Export Finance products can be accessed through traditional lenders and alternative finance companies like ScotPac.

Traditional lenders generally have stricter lending criteria and require Export Finance applicants to meet stringent requirements. The application process is typically much longer and can take several months before funding is put in place. Due to the extensive due diligence process and lending requirements, Export Finance from a traditional lender is usually out of reach for most small and medium-sized businesses.

Alternative lenders have become an increasingly important source of funding for export businesses. The lending criteria are less stringent, and funding can be secured much faster than from a traditional lender. It’s possible to secure financing without using your home as collateral and without loading long-term debt onto your business.

With the growth of alternative lenders, there is an increasing number of ways to secure Australia Export Finance. The main differences between traditional and alternative lenders are the difficulty in qualifying for financing and the speed at which you can receive funding.

Traditional lenders are generally risk-averse. To determine your eligibility for business loans and funding facilities, a traditional lender will examine your business trading history, credit rating, financial statements, and projected cash flow. You will usually also need to use your home or personal assets as collateral to secure funding.

With a traditional lender, the application process is often more extended. It can take up to 3 months before funds are made available to you.

Alternative lenders are much more flexible and do not need to meet the strict lending criteria that results in traditional Australia Export Finance being out of reach for many businesses. Even if your company has a short trading history or poor credit score, you may still qualify for funding.

The application process for alternative lending is also much faster. If you have prepared your financial documents and export contracts, you can receive a cash advance in as little as 24 hours.

Australia is the 24th largest exporter in the world, and Export Finance plays a key role in supporting the growth of Australian businesses in global and commonwealth trade.

Compared to international peers, the use of invoice finance to fund export businesses is underutilised. Invoice finance volumes in the UK total 19% of GDP, compared to only 3.9% of GDP here in Australia.

ScotPac provides export businesses with a fast and flexible way to fund growth and make an impact in international markets.

The cost of Export Finance is dependent on several factors, including the length of the funding facility and the value of the goods sold. Before a funding facility can be put in place, the finance company will determine the risk involved by analysing the importer and exporter’s creditworthiness.

Contact our team of Trade Finance specialists to receive a quote tailored to your business.

Talk to one of our friendly Export Finance specialists to find the best solution for your business and what you need to apply.