Trade finance loan

A trade finance loan can be used to provide short term funding for imports or exports. It's also a useful tool for maintaining cash flow to cover the longer cash cycle associated with international sales.

Benefits at a glance

  • Better cash flow management for international trading

  • Helps exporters fund the cost of production and sales

  • Short term funding for specific transactions or a standing facility for regular trading

  • Interest rates designed for short term funding

  • Can be in overseas or New Zealand currency

  • Helps importers cover the cost of purchasing and distribution

Is it right for me?

If you trade overseas, there’s often a long time between your costs and your revenue. A trade finance loan is one of the most efficient ways to bridge that gap, to ensure you don’t run out of cash. Interest rates are lower than an ASB Business Overdraft, and each loan can be applied to a particular transaction.

A trade finance loan gives you more control, because you know you have the cash to cover your upfront costs.

About trade finance loans

Trade finance for importers

When you’re importing goods, you usually have to pay for them before you receive cash from their sale here in New Zealand. A trade finance loan can cover that gap, and give you the working capital you need to run your business.

Each loan covers a specific transaction, based on your purchase order and import documentation. You can set up your loan in New Zealand dollars, or in the currency of your supplier, so that you can avoid the effect of exchange rate movements on your profitability.

Trade finance for exporters

Exporting from New Zealand can be challenging. The cost of production, customs and shipping can hit long before payment arrives. In addition, overseas orders are often much larger than domestic orders – which is a great problem to have, but means your cash flow challenge can be extreme.

A trade finance loan can give you the funds to cover those upfront costs. It can be secured against the goods and your purchase order, and each loan can be tied to a specific order.

Lower interest rates and simpler security

Trade finance loans offer lower rates of interest than overdrafts or term loans, as they’re short-term loans tied to specific transactions. It makes them a very efficient source of working capital.

They also may not require security against property or other assets, which makes them simpler and cleaner to operate.

A trade finance facility

If you have regular trading activity, you may be able to set up a trade finance facility. This is a standing line of credit that you can draw on as required for agreed types of transactions.

Invoice financing

You can also use a trade finance loan to fund your slow invoice payers. 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.

Operate your trade finance loan online

The International module of FastNet Business lets you view and draw on your trade finance loans online. It gives you more control over your finance and you can use it anywhere in the world you have internet access.

Next steps

Enquire now

Email the Trade Finance and Foreign Currency teams below.

Trade Finance

Foreign Currency

Call us

We're here to help, 8.00am to 5.00pm NZT, Monday to Friday.

Trade Finance

Foreign Currency

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Get more with ASB

Foreign exchange risk management tools

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

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.

FastNet Business International

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.

ASB's terms apply. Rates and fees subject to change.

International business Trade finance loan