Quick answer: Treat import funding as a complete cash-conversion cycle, not simply a stock purchase. Supplier deposits, FX, freight, import GST or duty, inventory holding and customer terms can tie up cash for months. Depending on scale and lender, trade finance or a revolving working-capital facility may fit better than short amortising debt.
Questions business owners commonly ask
- The manufacturer wants half on order and the balance before shipment — how do I fund it?
- I pay import GST before recovering it through sales — should the facility include that timing gap?
- Can trade finance run until the distributor finally pays me?
Map every cash date
Deposit, balance payment, freight, customs and GST, warehouse, customer invoice and collection should all appear in the funding timeline.
Supplier and buyer terms are both finance
Negotiate supplier credit, deposits or staged payment where available and customer deposits or shorter terms where the market allows.
FX can change the limit required
A weaker Australian dollar can increase landed cost between order and payment. Build sensible buffers and obtain appropriate FX-risk advice.
The exit is sale and cash collection
Speculative or slow inventory can trap both lender and owner. Do not increase stock simply because a larger facility is available.
Related guides
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General information only. Business lending policy, security, guarantees, pricing, covenants and documentation vary by lender and transaction. This is not legal, tax or accounting advice.
Frequently asked questions
What is trade finance?
A range of facilities structured around supplier and import or export transactions.
Can import GST be part of the cash gap?
Yes, it can be a material timing item in the forecast.
Is a term loan suitable?
Sometimes, though repeat import cycles often suit revolving or trade structures.
Can supplier credit reduce borrowing?
Yes.
What documents help?
Supplier invoices, orders, sales history, bank and BAS or financial evidence, plus a cash-flow forecast.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
