$300,000 trade finance

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gabby
Posts: 5
Joined: Wed Jul 06, 2016 2:36 pm

$300,000 trade finance

Postby gabby » Wed Mar 23, 2016 10:11 am

Hello. I understand that you guys can help with trade finance. I want to borrow around $300,000 so any help regarding the current lending criteria for this would really be appreciated.

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: $300,000 trade finance

Postby Otto Dargan » Wed Mar 23, 2016 2:15 pm

Hi gabby. Welcome to the forums.

Unfortunately, lenders will usually let you borrow only up to $250,000 secured over residential or commercial property or a charge over business assets with trade finance.

As with any other type of business finance, the criteria applicable to you will depend on the strength of your personal situation as well as your business.

Please note that the minimum loan term is 14 days and maximum is 180 days. The interest rate will be based on a short term cost of funds interest for AUD or major foreign currencies plus a margin.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

gabby
Posts: 5
Joined: Wed Jul 06, 2016 2:36 pm

Re: $300,000 trade finance

Postby gabby » Thu Mar 24, 2016 6:05 am

If there's no way to get more then $250,000 is fine. I'll check out your website for now and will call to see if a $300,000 trade finance can be done any other way.

Mikey Whimpreck
Posts: 8
Joined: Wed Mar 16, 2016 7:45 pm

Re: $300,000 trade finance

Postby Mikey Whimpreck » Thu Jun 02, 2016 2:04 pm

Hi everyone, I understand that we can get a letter of credit with trade finance. Anyone know how that works?

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Otto Dargan
Mortgage Specialist
Posts: 7698
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: $300,000 trade finance

Postby Otto Dargan » Thu Jun 02, 2016 4:57 pm

Hi Mikey Whimpreck,

A letter of credit or (LC) or export documentary letter of credit is a feature that can help provide a level of security when transacting with an overseas business.

Importers are normally required to pay in advance for goods shipped by an exporter. This can be very risky since there's no guarantee that they will receive them. Similarly, if credit were to be extended by the exporter, there's no guarantee that they will be paid later.

So if you're an importer, you can instruct your bank to provide the exporter with a letter of credit that guarantees payment once you or your bank receives documents confirming that the goods have been shipped, which can include a bill of lading (BoL), commercial invoice, Certificate of Origin or an inspection certificate.

Until the exporter is paid or provided a bill of exchange to pay at a future date, the bank retains control over the goods.

If you want to learn more, you can go through our website. We can also be reached on 1300 889 743 or you can even enquire online.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Mikey Whimpreck
Posts: 8
Joined: Wed Mar 16, 2016 7:45 pm

Re: $300,000 trade finance

Postby Mikey Whimpreck » Thu Jun 02, 2016 8:20 pm

Awesome explanation. Thanks. I am considering this as well so yeah, will contact you guys for help. Cheers.


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