What Is a Import Finance?

Key highlights

• Bridges the gap between paying suppliers and selling imported goods
• Frees working capital tied up in stock and shipping
• Can be structured against orders, invoices or the goods themselves
• Suits businesses importing stock or materials into Australia

What import finance does

When you import, money leaves your business well before it comes back. You often pay an overseas supplier up front or on shipment, then wait while the goods are manufactured, shipped, cleared and finally sold, sometimes on credit terms to your own customers. Import finance covers that gap, funding the purchase so your working capital is not locked away for the whole cycle. It effectively lets you place larger or more frequent orders than your own cash would allow, keeping shelves stocked and suppliers paid. The facility is repaid once your goods sell and the money flows back in, matching the funding to your trading rhythm.

How it is commonly structured

Import finance comes in several forms, and the right one depends on your supply chain. Some facilities fund the supplier payment directly, sometimes using trade instruments that give the overseas seller confidence they will be paid. Others advance against the goods themselves or against the invoices you raise once the stock is sold, releasing cash sooner. Many importers combine import funding with a broader working capital or invoice finance line so the whole cycle is covered. Because arrangements vary widely between lenders, the structure can be tailored to how you order, ship and sell, which is where comparing multiple lenders helps you find a genuine fit.

Amounts, terms and pricing

Import facilities scale with your order sizes and trading volume. Unsecured working capital lending is typically available up to around $500,000 with some lenders higher, while larger or secured import lines can be considerably bigger, subject to lender criteria. Terms are usually tied to your trading cycle, funding each purchase for the weeks or months until the goods sell. Pricing is indicative and depends on the lender, the structure, the security, your time in business, turnover and credit profile, so no single rate applies. Stronger, secured profiles generally price lower. A broker can compare how different lenders would fund and price your imports.

Who it suits

Import finance suits any ABN business that buys goods or materials from overseas and faces a delay between paying and being paid. Wholesalers, retailers, manufacturers sourcing components, and distributors all commonly use it to keep cash flow steady during the import cycle. It is particularly valuable when supplier terms are tight, order volumes are growing, or seasonal demand means buying stock well ahead of sales. If your growth is being held back because working capital is constantly tied up in goods in transit, import finance can release that pressure. The suitability comes down to your trading pattern, which a broker can quickly assess against lender criteria.

If imported stock keeps tying up your working capital, the right facility can free it. Simon Kendrick can compare suitable import and working capital options across more than 80 lenders on a single application. Request a free quote to see what may suit your supply chain.