A letter of credit for imported goods is a commercial finance agreement, often used when bringing in goods from overseas. To qualify, the client must have property with enough equity. The bank will secure the property and issue a letter to the client, who then shows it to the international supplier. This letter assures the supplier that they will be paid, so they release the goods.

If anything goes wrong with the client’s finances, the bank can use the property’s equity to pay the supplier. This arrangement is common for importers and exporters. A specialised commercial broker can help decide the best option.

Once the goods arrive in Australia, depending on their nature, the loan can be repaid quickly as a chattel mortgage or over a longer period as a commercial loan, sometimes more than five to seven years. We always create a plan that’s right for the business and easy on their cash flow. This is where we excel.