Quick answer
Wholesalers and importers usually need fast funding for supplier deposits, balance payments before shipping, landed costs such as freight, duty and GST, and the gap while customers pay on account. Established businesses may use unsecured loans or lines of credit sized on turnover; larger orders are often funded against property, with $20k to $250k possible same day and up to $5m within 24–48 hours.
Key points
- Cash leaves months before customers pay — deposits, shipping, duty, GST
- Most imports attract 10% GST, plus duty and charges depending on the goods
- A line of credit suits a steady rhythm of orders
- Size funding on the landed cost, not the supplier invoice
The longest cash cycle in trade
Importing and wholesaling stretch the cash cycle further than almost any other business. A typical import looks like this: pay a deposit to the overseas supplier, wait for production, pay the balance before shipping, wait for the voyage, pay freight, duty, GST and charges to clear the goods, move them into a warehouse, sell to customers on 30 or 60-day account terms, and wait to be paid. From the first deposit to the last customer payment can easily be four to six months.
When sales grow, that cycle has to be funded on a bigger scale. When a supplier offers a better price for a larger order, or a customer places an unusually large one, the funding need jumps overnight.
Where the money goes
| Stage | Typical cost | Timing |
|---|---|---|
| Order placed | Supplier deposit | Weeks to months before arrival |
| Before shipping | Supplier balance | Before goods leave origin |
| In transit | Freight and insurance | At shipping or on arrival |
| At the border | Duty (if applicable), GST, charges | Before release |
| Arrival | Local freight, storage | On arrival |
| After sale | Customer terms | 30–60 days after delivery |
Business.gov.au notes that most imports are subject to 10% GST, and depending on the type and value of goods, customs duty, processing charges and biosecurity costs may also apply. Size your funding on the full landed cost.
Choosing the right structure
Regular importers: a line of credit sized to one or two shipments, drawn at deposit and balance stages and repaid as customers pay. This avoids a new application for every container.
One-off large order: a term loan sized to the landed cost and repaid from the sale of that stock.
Order larger than turnover supports: property security, which lets a lender fund a bigger order quickly — $20k to $250k possible same day, up to $5m within 24–48 hours.
Mixed approach: unsecured facility for routine shipments, property-secured funding for exceptional orders.
Supplier balance due before shipping? Send the proforma to a specialist — no credit check to enquire.
What lenders want to see
- Proforma invoices or purchase orders from suppliers.
- Customer orders or sales history for the product line.
- Gross margins after landed costs.
- Stock turn — how quickly the goods sell.
- Debtor profile — who your customers are and how they pay.
- Bank statements and BAS, and property documents if offering security.
Wholesale and import patterns by sector
Consumer goods importers supplying retailers face seasonal peaks — especially the pre-Christmas build — and retailer payment terms.
Food and beverage importers manage perishability, biosecurity requirements and tight shelf lives.
Building products and hardware wholesalers follow the construction cycle, with trade customers on account.
Industrial and machinery parts distributors hold broad inventories and need to fund slow-moving but essential lines.
Reducing the funding you need
- Negotiate deposit percentages and balance timing with suppliers.
- Ask customers for deposits on large indent orders.
- Tighten debtor terms or offer early-payment incentives.
- Stage orders rather than buying a full year’s stock at once.
- Keep an eye on slow-moving lines; the ATO’s trading stock rules mean year-end stock values matter at tax time too.
Questions to expect on the first call
- What are you importing, from where, and how often?
- What’s the landed cost of this order, and when is each payment due?
- Who are the customers, and what are their terms?
- What margin does the product carry?
- Is property available if the order is large?
Mistakes to avoid
- Funding the supplier invoice only and running short at the border.
- Using short-term, daily-repayment loans for stock that sells over months.
- Over-ordering to reach a price break without the sales to support it.
- Leaving funding until the balance is due.
An illustrative example
A Melbourne wholesaler of outdoor furniture places its summer order with a supplier in Asia, requiring a deposit in June and the balance in August before shipping. Retail customers pay on 60-day terms from October. The business uses a line of credit to pay the deposit, balance, freight, duty and GST, and repays it from November to January as retailer payments arrive. Illustrative only.
Related reading for importers
Importing touches several funding topics covered elsewhere on this site. If your imported goods are retail stock, see funding stock for sizing a stock facility and retail and ecommerce for seasonal planning. If they’re raw materials for your own production, manufacturing covers the longer production cycle. And if you’d like to compare what different offers would cost you in dollars before committing, the loan cost calculator takes the fees and interest you’ve been quoted and shows total cost, cost per month and cost per day.
A practical tip: keep a simple shipment register — order date, deposit paid, balance date, ETA, landed cost and expected sale window — for every container. It becomes your cash forecast and, when you need funding, your best evidence.
Keep containers moving
When a supplier’s deadline won’t move, neither should your funding. Enquiring doesn’t involve a credit check, your details aren’t sent to a whole panel of lenders, and a real specialist looks at your trade cycle before recommending a structure. Please share accurate order values, margins and customer terms on the form. See if you qualify.
Frequently asked questions
Can I get a loan to pay an overseas supplier?
Yes. Paying supplier deposits and balances is a common business purpose. Lenders will want the proforma invoice or purchase order and an understanding of your customer orders and margins.
What costs should I include when funding an import?
The landed cost: supplier invoice, international freight and insurance, customs duty where applicable, GST on imports, processing charges, local transport and storage.
Is a line of credit better than a loan for importers?
If you import regularly, a line of credit sized to one or two shipments usually works better than a new loan each time. A term loan suits a one-off large order.
Can the funding be paid directly to my supplier?
Often, yes, depending on the lender and the payment method. Discuss it upfront so funding lines up with the supplier's payment deadline.