Trade Advance Financing

Trade Advance Financing

  1. Import Letter of Credit (LC) and SKBDN
  2. Import Documentary Collection (IDC)
  3. Letter of Credit / SKBDN Advising
  4. Export Documentary Collection (EDC)
  5. Export Financing
  6. Import Financing
  7. Trade Advance Financing
  8. Bank Guarantee (BG)
  9. Standby Letter of Credit (SBLC)
  10. Tax Payment Service

Trade Advance (TA) Financing Financing is short-term trade financing offered to Customer, who performs goods purchases upon Open Account or Advance Payment, to raise financing by using purchase order (PO) or commercial invoice. Such transactions can be domestic trade or cross border.

Product Features

Features Descriptions
Drawdown Underlying Purchase Order (PO) or Commercial Invoice.
Currency IDR, USD, AUD, SGD, EUR, GBP, HKD, JPY, NZD, CNY
Financing Amount Financing up to 100% value of Purchase Order or Commercial Invoice.

Benefits

Benefits Descriptions
Managing working capital / cash flow Trade Advance Financing can help Customer (Buyer) in managing working capital / cash flow since payment claim from Seller is received until the funds from goods sales are available.
Improving trust Trade Advance Financing helps Customer (Buyer) to fulfill payment obligation to Seller timely, hence it improves the Seller trust to your business.
Tailor made solution Financing solution provided by Commonwealth Bank is tailored to fit with your business cycle or cash flow.

Trade Advance Application Process

Customer may apply credit request to Commonwealth Bank in form of Trade Advance facility, with reference to the valid credit procedure. Then, after the facility is approved, Customer may withdraw the loan in form of Trade Advance Financing up to the available credit limit, based on purchase order or claim document received from Seller, such as commercial invoice.

Trade Advance Transaction Flow

Fees

Fees related to Trade Advance can be found here

Risk

The tenor of Trade Advance Financing should be adjusted to Customer sales cycle. Submission of financing with non-appropriate tenor may pose the risk of Customer incapability to pay its obligation to the Bank.

Further Information

Call CommBank can be accessed through 1500030 or (6221) 2935 2935 for international access. We serve customer 24 hours a day 7 days a week (including public holiday).