Trade Finance

Taurus Trade Finance assists companies to pay their suppliers for goods. The trade finance product is predominantly used to pay overseas suppliers for imported goods, however, it is available to pay local suppliers as well.

Taurus will fund up to 100% of the cost of the goods and generally does not require clients to put up deposits. Our import finance product can even be used to fund costs such as freight, duty and GST to remove funding obstacles that limit a company's ability to take on further sales orders and grow the business. In summary,

• Up to 100% finance of purchase cost
• No deposits required
• No property security
• GST, Duty and Freight financed

Trade Finance comprises Letters of Credit [LC's], Documentary Collections and Trade Bill facilities.

Letters of Credit

A Letter of Credit is an international form of payment from a bank guaranteeing that a buyer's payment to a supplier is on time and for the correct amount upon the compliance of the terms on the Letter of Credit. Letters of Credit are widely used and understood, they represent a secure approach to trade for both sellers and buyers.

Like all Taurus products Taurus Letters of Credit's generally do not require supporting real estate or cash to secure them. They are drawn on a major Australian trading bank and can be established with flexible terms and in almost any currency.

Documentary Collections (or other method)

Documentary Collections (Documents against Payment/Sight Draft) or (Documents against Acceptance) are often used as an alternative to Letters of Credit. They still form a secure payment method for suppliers whilst alleviating the burden of compliance with the strict form of Letters of Credit. Suppliers can present their documents at their local branch overseas or alternatively send their documents directly to Taurus's bank in Australia. Other methods of payment are also acceptable to Taurus and can be discussed at the time of application.

Trade Bills

A Taurus Trade Bill is a loan with the fixed amount, fixed term and fixed interest rate. Terms would generally range from 30 days to 90 days.

A Taurus Bill is raised when the supplier is paid. This may occur when a supplier draws down on an LC provided previously. Alternatively the Bill might be raised once a supplier has been paid directly without the use of an LC. The bill period would generally correlate with the time required to ship, land and deliver goods to the end customer.

GST, Duty & Freight Finance

Taurus understands that paying GST, Duty and Freight can be a heavy burden to clients, something which Debtor Finance alone cannot assist with as the goods are not yet delivered and therefore no funding is available. Therefore, as part of the trade finance facility Taurus may be able to pay for these costs in addition to the cost of the goods.

Who can Use Taurus's Trade Finance Product?

To qualify for Trade Finance the client must have firstly met the Debtor Finance qualifying criteria. Additionally, the criteria for Taurus's Trade Finance product include;

• Imported or domestic goods that are at least partially pre-sold [customer orders are held for the goods being acquired]
• Quality control procedures are either in place or can be established

What does Trade Finance cost?

Taurus' ongoing charges comprise trade finance fees and interest. Trade Finance fees are charged upon establishment of the individual LC or Trade Bill as a once only fee, they are not charged again for each month that it remains outstanding. The fee is charged as percentage of the transaction amount and is calculated depending on a number of factors including purchasing turnover and transaction size.

Contact Taurus Now

Send us an email or call toll free on 1300 135 108.

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