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Business finance lender Moneytech has launched an equipment import finance facility and has integrated payments via trade finance, foreign exchange (FX), and equipment finance into one transaction.
The solution is designed for Australian businesses seeking to import machine and equipment from offshore suppliers.
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Through the facility, businesses can fund equipment at a later date on an equipment finance loan across a range of industries including manufacturing, civil, transport, agriculture, and mining.
The solution covers all aspects of manufacturing, importing, commissioning, payment, and longer term asset finance of overseas equipment and machinery.
Moneytech CEO Nick McGrath said the lender converts a short-term trade finance facility to a long-term equipment finance solution, adding Moneytech offers all the products in-house.
“This removes the need to deal with multiple service providers when importing equipment from overseas, which is a major pain point for growing Australian businesses,” he said.
Mr McGrath said the FX forward hedging component of the new solution is key as it provides certainty of the total payment amount in Australian dollars.
“We understand that an increasingly unpredictable market and daily currency fluctuations can put pressure on any business,” he said.
“The ability to manage our client’s FX needs in-house alongside our finance facilities allows us to mitigate fluctuations and risks for our business clients.”
The lender said forward exchange contracts will need to be taken out on every transaction and the FX rate will be an agreed market rate on the day of the payment.
Moneytech provides a once-off trade finance facility to assist with the importation of overseas equipment. This is an interest-only facility valid for up to 120 days from the date of the supplier payment to the date the equipment is in Australia, installed, and ready for use.
Once the equipment has landed in Australia and is ready for use, Moneytech can convert the trade finance facility into an equipment finance facility.
Up to 90 per cent (Australian dollar equivalent) of the original suppliers’ tax invoice can be funded. When the customer has paid an upfront deposit of at least 20 per cent to the supplier, Moneytech may refund 50 per cent of that deposit to the customer once that equipment arrives in Australia.
