$400k Trade Finance Facility Supporting Importer Cash Flow and Growth

Industry

Import and Distribution

Challenge

The client required additional working capital to fund upfront supplier payments for imported inventory while managing extended customer payment terms.

Results

Fifo Capital approved a $400,000 trade finance facility, providing immediate liquidity to support supplier payments and ongoing growth.

Key Product

Trade Finance

120

days - extended terms

$400k

revolving facility

Fifo Capital understood how our business operates and structured a solution that gives us the flexibility to manage supplier payments and continue growing.

Romeen

Director

The Challenge

The client operates an import‑led business model, requiring product to be purchased and paid for well in advance of sale. This created a structural working capital gap driven by:

Upfront payments to overseas suppliers
Extended trading terms offered to customers
Increasing reliance on existing bank overdraft facilities

Despite these pressures, the client demonstrated solid fundamentals, including consistent turnover, strong gross margins, and clear seasonality in demand cycles.

The opportunity was to unlock additional funding capacity to support growth, without placing further strain on existing banking facilities.

The Solution

Fifo Capital provided a $400,000 revolving trade finance facility to fund supplier payments and smooth the client’s working capital cycle.

The facility was supported by:

A second‑ranking mortgage over residential property
All‑assets security over the business
Personal guarantees from the director

The deal worked because:

Strong underlying trading performance supported servicing
The client operated an inventory‑backed model, providing additional asset coverage
Cash flow from ongoing operations provided a clear primary exit
The facility was structured to complement existing bank funding, not replace it

The Results

With the facility in place, the client achieved improved liquidity and greater control over cash flow.

The funding enabled the client to:

Pay suppliers on time and maintain inventory supply
Reduce reliance on overdraft capacity
Increase purchasing volume to support growth
Better manage seasonal fluctuations in demand

With strong margins and consistent demand, the facility positions the client to continue scaling while maintaining disciplined working capital management.

Ready to maximise cash flow and fuel growth? Call us on 1300 852 556 today.