If you’re importing or exporting, or considering it, trade finance tools provide an important means to reduce your business’ risk while maintaining cash flow. An ASB international business expert will help you to select the right trade finance tool for your particular situation.
For more information, see our guide to Managing seven key risks when trading overseas.
The timescales involved in international trade can put a strain on your cash flow. An ASB trade finance loan is a good option if you’re an exporter and need help with funding from the time you ship your goods, to the time you receive payment. As an importer, you may want funding to cover the time from when you pay for the goods to when you receive money from the sale of those goods.
Financing this way allows funds to flow where they need to be, on time, and both parties can have confidence that each will benefit from a smooth transaction.
If you want to import, ASB can provide you with an import letter of credit, which gives the exporter confidence that their goods or services will be paid for. Geographical distance, differences in law and longer payment terms can sometimes concern exporters, so having an import letter of credit is particularly helpful when buyers and sellers are getting to know and trust each other.
Benefits include:
Find out how different types of letters of credit can be used in various circumstances.
Exporting? ASB provides a short-term financing service to help you improve cash flow and working capital. Instead of selling your invoices for a flat fee, you can borrow against them, with a trade finance loan. You get the cash immediately, and repay the loan when your invoices are paid, usually at a much lower total cost than factoring.
If you’re exporting goods, we can arrange for a bank in the importer’s country to act on your behalf. You provide us with the collection documents, which we then send to the importer’s bank. That bank releases the collection documents to the importer only when funds are available and the importer has made payment arrangements.
Email the Trade Finance and Foreign Currency teams below.
Talk to one of our International business experts.
If you trade overseas, it's important to remember that even small changes in an exchange rate can have a big impact on your profitability. That's because the difference in the total value of your deal comes out of your margin. We have a range of tools available to help you manage this risk more effectively, watch our FX videos.
FastNet Business internet banking is a powerful online banking platform that allows your business partners access to your ASB accounts. You decide what each person can see and do, so you can delegate your banking tasks without losing control.
If your business relies on exporting or importing, FastNet Business International can save you time and reduce costs. Use it to manage international payments, operate ASB Foreign Currency Accounts, set up import letters of credit and view your ASB trade finance facility.
The Financial Markets Online module for FastNet Business internet banking lets you manage your foreign exchange requirements. You will be able to manage foreign exchange deals in real-time, complete foreign exchange orders and set up alerts for particular currencies.
ASB's terms apply. Rates and fees subject to change.
