Quick answer
Stock finance for importers funds the period after goods have been paid for and landed but before customers have bought and paid for them. For most small importers it's a line of credit or unsecured facility sized on turnover, or a property-secured loan for larger volumes. Lenders focus on how fast your stock turns, your margins and your trading history.
Key points
- Imported stock ties up cash for longer than locally bought stock because you pay months before it arrives.
- Lenders look at stock turn, margin and bank statements more than at the value of the cartons in the warehouse.
- A line of credit suits businesses that restock regularly; property security suits large or slow-moving volumes.
- Knowing your landed cost per unit is the starting point for sizing any stock facility.
What makes imported stock different to fund?
Buy from a local wholesaler and you usually pay on 30-day terms, roughly when the stock arrives. Import it yourself and the order flips: you pay a deposit when you order, the balance before it ships, then duty, GST and clearance costs when it lands. By the time the first carton is on your shelf, you may have been out of pocket for two or three months.
That’s the trade-off importers accept for better margins and control over the product. The margin is real, but so is the cash gap. Stock finance is how businesses stop that gap from choking everything else.
Which stock finance options suit importers?
| Facility | How it works | Best for |
|---|---|---|
| Line of credit | Draw for each order, repay as stock sells, draw again | Regular orders, predictable sell-through |
| Unsecured term loan | Lump sum repaid over a set term | One large order or a stock build for a new account |
| Property-secured loan | Larger amount using residential or commercial property | Big volumes, several containers, newer businesses |
Unsecured and line-of-credit options for trading businesses typically run from $5,000 to $500,000 and are sized on turnover and bank statements. Property-secured loans run from $20,000 to $5,000,000 using first mortgages, second mortgages or caveats. Past credit issues and ATO debt are looked at case by case rather than ruled out.
If you import repeatedly, it’s worth reading about an import line of credit — the revolving structure mirrors the way stock actually moves.
How do lenders look at imported inventory?
Most small-business lenders don’t value your cartons the way you do. Stock can date, get damaged or be hard to sell in a hurry, so the focus is on the business’s ability to turn it into cash. Expect questions about:
- Stock turn — how many times a year your stock sells through. Faster turn means less borrowing for less time.
- Gross margin — the gap between landed cost and selling price. A healthy margin absorbs freight surprises and exchange-rate moves.
- Who buys it — retail customers paying at the till, trade customers on 30 days, marketplaces with payout delays.
- Bank statements — the deposits coming in each month show the real rhythm of sales.
- Concentration — one big customer or one big supplier is a risk lenders will want to understand.
You’ll get a better conversation if you know your landed cost per unit and roughly how long each container takes to sell.
How much stock finance do I need?
Work backwards from the order, not forwards from a round number. Add up everything that leaves your account before sales come back — deposit, balance, freight and insurance, duty, import GST and clearance — then subtract what you can comfortably fund yourself without starving wages, rent and tax payments. What’s left is your funding gap.
Our landed cost and funding gap calculator does exactly that, and shows how many weeks the money is tied up. If the gap looks bigger than you expected, you can talk it through with a real person before you commit to the order — no credit check to ask.
Illustrative example
Illustrative only. An online store selling fitness gear lands a 40-foot container every quarter. Each container costs about $95,000 landed and takes around eleven weeks to sell through. Because the next deposit is due before the last container has sold, there are always two orders in the system. Rather than taking a new loan each quarter, the owner uses a revolving facility sized to the overlap, drawing for deposits and balances and paying it down as marketplace payouts land.
What about the GST I pay at the border?
GST on imports is generally payable before the goods are released, so it’s part of the cash you need. The ATO notes that a registered business importing goods for a creditable purpose can claim GST credits, provided it holds the documents showing the goods were imported and GST was paid or deferred. So GST affects your cash, not your margin — but the credit only comes back when you lodge your BAS. Quarterly lodgers can wait a while.
Some importers join the ATO’s deferred GST scheme so import GST goes on their monthly BAS instead of being paid at the border. It’s worth a conversation with your accountant if you import often.
How can I reduce the amount I need to borrow?
- Order closer to demand. Smaller, more frequent orders cost more in freight but tie up less cash.
- Negotiate supplier terms. A smaller deposit or part of the balance after arrival shortens your gap.
- Speed up sell-through. Pre-sell to trade customers or run pre-orders before the container lands.
- Tighten your own terms. If trade customers pay in 60 days, your stock finance runs 60 days longer.
- Avoid border surprises. Confirm tariff classification and duty with a broker before you order.
Our guide to the importer’s cash cycle walks through each lever with numbers.
Check what’s possible for your stock
If landed stock is soaking up the cash you need to run the business, start a Trade Loan enquiry. It takes about a minute, doesn’t involve a credit check, and goes to a person rather than a lead list. They’ll call you to understand your stock turn, customers and order pattern. The more accurate your answers on the form, the faster we can get to an option that genuinely fits.
Frequently asked questions
What is stock finance?
Stock finance is any funding used to buy or hold inventory until it sells. For importers it usually covers the balance, freight and border costs as well as the time the stock sits in the warehouse. It can be structured as a line of credit, a term loan or a property-secured facility.
Will a lender take my stock as security?
Some specialist facilities do, but many small-business options don't rely on the stock itself. Unsecured and line-of-credit options are usually sized on turnover and bank statements, while property-secured loans use residential or commercial property.
How long can stock finance run for?
It depends on the facility. A line of credit is revolving, so you draw and repay as each shipment sells. A term loan has a set end date. Match the term to how long your stock typically takes to sell and be paid for.
My stock sells slowly — can I still get stock finance?
Possibly, but slow turn changes the conversation. Lenders will want to understand why, and property security often becomes more relevant. Improving stock turn also shrinks how much you need to borrow.
Can I use stock finance for goods bought locally from an Australian distributor?
Yes. The same facilities work for local purchases. Our content focuses on imports because the timing gap is longer, but the enquiry is the same.