For many business owners in Australia, all business loans seem the same. However, there are dozens of different financing options available in the market. These are tailored to different types of companies, operational conditions and types of businesses. Trade finance is a type of loan that delivers payment to an exporter on behalf of the importer before goods have arrived. The lender will loan money to the importer so that the exporter can be paid once goods have been shipped.
Markets across the globe are becoming more accessible and cross-border transactions are now common for many SMEs. These new conditions have led to trade finance becoming increasingly important in business.