Winter is notoriously slow for many Australian SMEs. Between disrupted supply chains, slower customer payments, and tighter cash flow, even high-performing businesses can struggle to maintain momentum. That’s where trade finance comes in—a powerful tool to keep operations running while suppliers are paid and stock keeps moving.
At Capital Plus Finance, we help businesses bridge these seasonal gaps using smart trade finance solutions. Here’s how it works—and why it might be exactly what you need this winter.
What is Trade Finance?
Trade finance is a type of funding that allows you to pay suppliers upfront—even if you won’t receive or sell the goods until weeks later. This is especially useful for:
- Importing goods from overseas
- Paying local wholesalers or manufacturers
- Handling large orders without upfront cash
Once the goods are sold or delivered, you repay the trade finance facility—ideally using the cash flow from those sales.
Common Scenarios Where Trade Finance Helps
✅ Importers Waiting on International Stock
Delays in customs or shipping can leave you out of pocket while stock sits in transit.
✅ Wholesalers Fulfilling Large Orders
Need to pay a supplier for 10 pallets of stock but your customer only pays on 30-day terms?
✅ Seasonal Buyers Securing Inventory
Retailers often buy big in July/August for spring sales—trade finance helps fund bulk purchases ahead of time.
Benefits of Trade Finance
- Improves supplier relationships by paying them on time or early
- Avoids cash flow gaps caused by payment delays
- Unlocks supplier discounts for upfront payment
- Reduces reliance on personal or unsecured loans
- Flexible repayment options tied to your sales cycle
Trade Finance vs Business Loan: What’s the Difference?
| Feature | Trade Finance | Business Loan |
| Purpose | Pay suppliers directly | Use funds as you choose |
| Repayment Trigger | After goods are delivered/sold | Fixed schedule |
| Security | Often secured by invoice or goods | May require asset or property |
| Speed | Fast once facility is set up | Varies by lender and loan type |
How to Get Trade Finance in Place
- Provide business ABN, recent BAS and bank statements
- Supply purchase orders or supplier invoices
- We arrange a facility—either transaction-by-transaction or revolving
- Lender pays supplier directly, you repay once stock is sold or payment is received
Even businesses with short trading histories or past credit issues can qualify, depending on structure.
Final Thought
If winter’s putting a freeze on your working capital, trade finance could be the boost you need to keep orders flowing, suppliers happy, and customers well-stocked.
Grow Your Business Without the Cash Flow Strain – Explore Equipment Finance Solutions
Need to upgrade machinery or invest in better tools? Our tailored finance options help you move forward without draining your cash reserves.
👉 Book a meeting with the Capital Plus Finance team today and let’s find the right solution for you.
