International Trade
Getting it Here or There
From identifying quality manufacturers and suppliers in a foreign country, to dealing with regulations and processes that vary wildly, or knowing the nuances of how to negotiate with specific cultures; there is a significant amount of complexity & risk to deal with everyday in Importing & Exporting.
Having the right finance facilities in place to support these complexities and risks is paramount.
Structured poorly and the best outcome is growing with the handbrake on. The worst outcome is complete business financial failure.
International Trade Finance Experience
FOREIGN EXCHANGE
The AUD is the most volatile major currency in the world (remember when it dropped 13c in 9 weeks in 2013, or when it bottomed at 48.5c in March 2001?!).
We help our clients with:
- Spot Trades at lower margins than Bank rates
- Forward Exchange Contracts (“FEC”) to hedge against future exchange rate movements.
LETTER OF CREDIT
- Documentary Letters of Credit (“Doc LC”)
- Standby Letters of Credit (Cross-Border Bank Guarantees)
Used effectively, “LCs” can reduce risk & costs whilst making processes more efficient.
INVENTORY & TRADE FINANCE
These facilities finance the cost of your inventory – during or after import – until such time as you get paid (or drawdown on Invoice/Debtor Finance).
Available in AUD as well as Foreign Currencies.
FOREIGN CURRENCY LOANS & OVERDRAFTS
If you’re acquiring assets in foreign currencies, or have foreign revenues & expenditures, it may be appropriate to consider borrowing in that currency in order to mitigate FX risk.
IMPORTING PLANT & EQUIPMENT
If you’re looking to import specialised machinery or equipment that is not available from Australian distributors, local Asset Financiers will often only want to drawdown once the goods are on Australian soil – which leaves you hanging for the import part.
Letters of Credit, FX hedges and short-term Import Finance can be stapled to an Aussie Equipment Finance facility that draws down once on shore and commissioned.
"Now I think the world is our oyster!"
In my experience with finance brokers, they try and sell you a product. But instead, STAC put themselves in our position; the fact that we could stay with our original bank saved us from a painful experience.
”This changed when STAC took on the project”
Prior to engaging STAC, our business was experiencing some challenges funding the significant growth we were experiencing, predominantly from our NZ operations. We had researched the use of other companies or negotiating with potential lenders ourselves and we had not had any success. This changed when STAC took on the project. STAC successfully negotiated a new facility that exceeds our previous facility it in terms of flexibility for future requirements. I would not hesitate to recommend STAC to anyone requiring their services. Their attention to their customer's needs, their commitment to the end goal to be achieved and the efficient manner in which they engage with management has made them a pleasure to work with.
"headache free transition... annual savings material"
We used STAC Capital to run a tender process with the major banks at the very beginning of Covid. I am certain many of us can appreciate the difficulty the “Covid View” brought to the process. The STAC team was confident in a strong outcome. In essence, we trusted, sat back and left the information structure requirements demanded by the bank to STAC as well as all conversations. The final outcome was headache free, transition to the new bank smooth and the annual savings material.
What clients
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