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Trade finance tools for importers and exporters

Need to manage risk or improve cash flow? An ASB international business expert can help with trade finance tools designed for importers and exporters dealing with an overseas supplier or buyer.

Benefits at a glance

  • Preserve internal capital until payment date
  • Improve cash flow with short term funding (up to 180 days) and access to ASB’s lowest form of finance rates
  • Available in major currencies and NZD
  • Increase confidence for all parties
  • Reduce the risks associated with trading with business’ overseas

Is it right for me?

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.  

About trade finance instruments

Trade finance loans and supply chain finance

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.

Import letters of credit

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:

  • We check all the documents for you throughout the process, including invoices and bills of lading, to ensure they're what you're expecting.
  • ASB controls payments to the exporter as well as the release of shipping documents to you, giving both parties the assurance that the terms of your agreement have been met.
  • Payment can be made “at sight” of the goods or after an agreed term from shipment, which means you can enjoy better cash flow. Your cash flow can be improved further by using a trade finance loan to fund goods until you’ve sold them in New Zealand.
  • The exporter has the peace of mind that should you not have enough funds to pay, ASB will pay the full outstanding amount.

Find out how different types of letters of credit can be used in various circumstances.

Invoice financing

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. 

Documentary collections

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.

Fees

Imports
Documentary collection
(min $75 / max $500)
Letter of credit
(min $150 or $90 via FastNet Business International)
Standby letter of credit
(min $250)
Exports
Documentary collection
(min $75 / max $500)
Letter of credit - free advising commission

Letter of credit - negotiation/collection commission
(min $100)

Get started today

01. Get in touch

Find an international business expert, call 0800 487 272 or email us.

02. Decide

We’ll work together to determine exactly what’s required to support your exporting and importing goals with each country.

03. Get going

Whether it's risk mitigation, managing foreign exchange or accessing an emerging market, we’ll tailor a plan to help you succeed.

Next steps

Find an international business expert

Looking to expand internationally or import goods to New Zealand? An international trade expert can help.

Find an expert

Enquire about trade finance

Email us about trade finance.

itsrelationshipteam@asb.co.nz

Enquire about foreign currency management

Email us about foreign currency management.

globalmarketsenquiry@asb.co.nz

Talk to us about trade finance

We’re open Monday to Friday, 7am to 6pm.

0800 487 272

Talk to us about foreign currency management

We’re open Monday to Friday, 8am to 5:30pm.

0800 806 280

Get more with ASB

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 tools for importers and exporters