The key concept behind trade finance is to pay suppliers as quickly as possible, in order to take advantage of early settlement discounts.
Under trade finance, we encourage you to approach your suppliers to offer them a “cash on delivery” payment option. Most if not all suppliers will offer an early payment discount for receiving funds on delivery of their products as by them agreeing to this, they get access to the money they are owed (from you). This allows them to use it for their working capital and you become a AAA rated client of your suppliers. For your business you not only retain the payment terms you currently pay your suppliers on (i.e. you only pay tim. the amount owing based on your current supplier terms, be it 30-60+ days), but you also enjoy an increase in your GP margin being the difference between the discount your supplier offers you and the small discount fee charged by tim. Trade finance can be used for all size companies wanting to take advantage of better trade supply terms.
Benefits to Your Business
- Increase cash flow due to more efficient use of capital
- Reap early settlement discounts while still paying as per your current terms
- Immediate increase in your Gross Profit margins
- Improve supplier relations and the financial strength of your supply chain
- Greater Purchasing Power – the extended trading terms enable you to increase your purchase orders in line with market opportunities.
- Reduce administrative costs by simplifying your payments process
- No Property Security required – Avoid the requirement to provide property as a security.
- Receipt of cash on delivery of the goods – no longer need to wait 30 to 45+ days to receive your payment
- Reduction of Trade Receivables and an increase in cash position
- Strong co-operation between your company and the supplier creates a competitive advantage
- Higher likelihood of getting more business from you as you now have cash flow to fund your growth.
Quick Online Application
It will only take a few seconds & will not affect your credit rating.
How Does it Work?
After ordering from the Supplier (1), the supplier then fulfills the order and invoices your business/the Buyer (3). The Buyer then approves the supplier’s invoices and confirms that it will pay tim. for these as and when they fall due (2). The Supplier and the Buyer agree to an early payment discount for payment on delivery (4). tim. pays the Supplier (5). The buyer pays tim. as agreed, as per the payment terms (6).
Why Do Companies Implement Trade Finance?
Companies implement trade finance for far more reasons than just cash release.
As Featured In
Why should I get trade finance from tim.?
We have funded over $365 million, to over 250 Australian businesses representing 22,000+ invoices.
Here are just a few of the many benefits of working with tim.:
Low Risk – Protection against your client not paying you or defaulting on payment
If you issue invoices and your client (the debtor fails to pay, and your business has not committed a fraudulent transaction) then timSecure™ steps in and protects you and covers up to 90% of the funding provided as well as the legal costs to chase your client (debtor). This is unlike business loans where you run the risk of losing your business as well as personal assets in the event of default by your client.
Low cost – No interest & No repayments
With tim., interest is not charged at all and you are not locked into repayments on a daily, weekly, or monthly schedule. In fact, there are no repayments at all because tim. is not a bank or like other ‘unsecured’ cash flow lenders and does not force businesses into ongoing loan facilities with fixed repayment terms. All you pay is a low pre-agreed fee and only at the time when your client pays their invoice/s.
No Hidden Fees
- No application or setup fees
- No exit fees
- No unused or undrawn facility fees
- No audit fees
- No property security
Available to all, not dependent on assets or credit ratings
tim’s invoice finance facility is available to every Australian business that invoices other businesses (B2B). We offer flexible funding facilities ranging from $50,000 to $5 million. Even if you can’t get a business loan or overdraft, you can qualify for invoice financing as it is based on your current sales, not your past.
No restrictive contracts or lock-in periods
Flexible and tailored funding solution for your business. Your business is not burdened with long ongoing contracts and repayment schedules. You can raise the cash flow against your debtors ledger whenever it suits you and your requirements.
Easy & fast application process
Apply online from the comfort of your home or business, no unnecessary paper-work. Get up to 85% of your invoices paid within 24-hours of approval. Our simple online system gives you full control over your financing.
Our Customers Have
Rated Us “Great”
Extremely great service
The personal service & inter-action was extremely gratifying, as a result we were able to do business, which has put our company in a very positive position, I can't speak highly enough of these professionals and would do business with them again, definitely recommend the great service they provide to anyone.
Excellent and Professional
We were experiencing a cash flow issue due to rapid expansion in our business. We dealt with TIM and all the lovely staff were so helpful and within a short amount of time we were able to solve our issues and resolve our cash flow. I would definitely use TIM again if needed without hesitation. I would also recommend them without any doubt to anyone in need of their services.
Latest Case Studies
Make cash flow management easy by aligning your accounting software to timEX.
tim’s accounting interface is quick to activate and helps to manage money and pay suppliers..