Import finance for businesses bringing goods in

How does import finance work?

Import finance bridges the time between paying for goods overseas and selling them at home. An overseas manufacturer often wants a deposit when you order and the balance before shipment. The goods then spend weeks at sea or in the air, clear customs, reach your warehouse and finally sell. Your money is out for months before any comes back.

Import finance puts funding into that gap. Depending on the facility, it can pay your supplier directly, fund freight and clearance, or advance cash against goods already ordered. You then repay as stock sells or as customer payments arrive.

Who uses import finance?

• Wholesalers bringing in container loads of stock
• Retailers sourcing ranges from overseas manufacturers
• E-commerce sellers importing product to sell online
• Builders’ suppliers, furniture importers and hospitality suppliers
• Manufacturers importing components or raw materials
• Businesses that have won a large order and must source product quickly

If your cash is tight because suppliers need payment long before customers do, import finance is worth a look.

What does an importer need to fund?

Cost	Why it matters
Supplier deposit and balance	Usually the largest outlay, paid before goods arrive
Freight and insurance	Shipping, handling and cover while goods are in transit
Customs charges	Duty, where it applies, and clearance fees
GST on imports	Typically payable at the border, with credits claimed later by registered businesses
Storage and delivery	Warehousing and delivery to the final site

Official information about duties and clearance is published by the Australian Border Force, and GST treatment by the Australian Taxation Office. A good accountant helps you model these before you commit to an order. We cover how the funding side can be structured around them.

What do lenders look at for import finance?

Lenders usually focus on whether the goods will sell and whether you can manage the trade cycle:

• The product. Standard, in-demand goods with a ready market are generally easier to fund than niche or fashion-driven lines.
• The supplier. An established supplier with a good track record gives comfort.
• Your customers. Confirmed orders from reliable buyers help, particularly for newer importers.
• Trading history and financials. Bank statements, BAS and financial statements show how the business performs. See our guide to BAS and financial statements.
• Security. The goods, receivables, business assets or property.
• Margins. Enough room to absorb freight, currency swings and discounting.

How does Ownright approach import finance?

Ownright Custom Finance is a solutions broker. Trevor Scott has more than 40 years in finance and leads a team that works across business, asset, commercial and private lending. For importers, that means we can combine tools: perhaps a facility against the goods, with property as additional security when the file needs it, or a short-term business loan to cover a deposit while longer-term arrangements are sorted.

Banks can be cautious with importers who have a short history or unusual goods. Where that happens, we look at lenders who assess imports differently. We say clearly what is possible, without promising approval or speed. Timing depends on the lender, the security and how quickly your documents arrive. We work with importers in every state and territory.

An illustration

Illustrative scenario only. A small pet-products business has found a manufacturer overseas that offers better pricing on larger orders. The manufacturer wants a deposit now and the balance before shipping. The owner’s cash is tied up in stock already on shelves. We look at the sales history, the order, the margins and the security available, then talk through options: a short-term facility to fund the deposit, then stock or invoice funding once goods arrive. The lender assesses the deal on its merits, and the structure aims to line repayments up with when the stock sells.

Mistakes importers should avoid

• Forgetting duties and GST in the cash plan. Border charges arrive before the goods sell.
• Ignoring currency risk. A weaker exchange rate can lift your landed cost between order and payment.
• Relying on one supplier. If they fail to deliver, your finance clock keeps ticking.
• Overbuying. Larger orders save on unit cost but can swamp storage and cash flow.
• Starting too late. The earlier you start, the more options you generally have. Get loan ready before the supplier’s deadline.

Which documents help?

• Supplier quote or proforma invoice
• Recent business bank statements
• Latest BAS and financial statements, where available
• Sales history or customer orders
• Details of existing debts and security
• Details of property or other assets offered as security

For a fuller list, see our guide on what documents you need for a loan.

What related options exist?

Importers often use stock and inventory finance once goods arrive, invoice finance while waiting for customer payments, and a business line of credit for flexibility. Transport businesses moving goods inland can read about transport and logistics finance.

How should an importer plan the cash timeline?

Think of an import as a series of cash events. The deposit goes out on order. The balance goes out before shipment. Freight and insurance follow. Duties and GST arrive at the border. Storage and delivery come next. Only then can you start selling, and customer payments may take another month.

Mapping those dates on a calendar shows the peak amount of money you need at once, which is usually larger than the supplier invoice alone. That peak is what your funding must cover.

It also helps to build in a buffer for delays. Port congestion, inspection holds and supplier slippage are routine in international trade, and each extra week stretches the period your money is tied up. A facility sized to the perfect timeline can leave you short when a container sits at the wharf.

If you import regularly, a standing facility may suit better than funding each shipment separately, because repeat paperwork falls away. If you import a few times a year, transaction-by-transaction funding keeps costs aligned with use. We can talk through which pattern describes your business and look at the structures that follow from it.

Ready to fund your next shipment?

Sounds like you’re looking for import finance. We’re the lending experts in helping Australian importers fund the gap between ordering and selling, so click the button below and see if you qualify.