Trade Finance & Payments | AusExports - LC, D/P, Financing Solutions

💰 Trade Finance & Payments

Secure payment solutions for international deals. Letters of Credit (L/C), Documents Against Payment (D/P), and financing options that protect both parties and optimize cash flow.

Payment Methods by Risk & Timing

🏦

Letter of Credit (L/C)

Bank-issued guarantee. Buyer's bank guarantees payment upon presentation of correct documents.

✓ Lowest Risk | 30% advance typical

📄

D/P (Documents Against Payment)

Buyer pays before receiving goods. Bank holds documents until payment clears.

✓ Low Risk | 50% typical

⏳

D/A (Documents Against Acceptance)

Buyer accepts 30-60 day payment term. You ship goods, buyer pays later.

⚠️ Medium Risk | 60-90 days

💳

Open Account (Trade Credit)

Net 30-60 days. Extended payment terms for established buyers with strong history.

⚠️ Higher Risk | 30-60 days

💵

Advance Payment

Buyer pays 100% upfront before goods ship. Lowest exporter risk.

✓ Lowest Risk | Immediate

🔄

Trade Financing

Work with our finance partners. Receive payment upfront, buyer pays over time.

✓ Instant Liquidity | Flexible terms

Comparison: Payment Methods & Risk

Payment Method Exporter Risk Buyer Risk Timeline Cost Best For
Advance Payment None ✓ High Immediate Minimal Established buyers, bulk orders
L/C (Irrevocable) Low ✓ Medium 7-10 days 1-2% L/C fee First-time deals, large shipments
D/P 30 Medium Medium 3-7 days 0.5-1% Verified buyers, shorter terms
D/A 60 High Low 60+ days 2-3% financing Repeat customers, competitive pricing
Open Account Very High Very Low 30-90 days 3-5% financing Long-term relationships only
Trade Finance None ✓ Finance Co. Flexible 2-4% interest Cash flow optimization

LC Readiness Checklist

If using Letter of Credit, ensure these documents are perfect—banks reject submissions with ANY discrepancies:

Commercial Invoice (signed, dated, matches L/C terms exactly)
Packing List with itemized cargo details
Certificate of Origin (Form A or country-specific)
Health/Phytosanitary Certificate (if required for product)
Insurance Certificate (if CIF Incoterms)
Inspection Certificate (if buyer requested)
Bill of Lading or Airway Bill (transport document)
Product specifications & test results (if requested)
Halal/Organic/Kosher certificates (if applicable)
Customs declaration & export license copy

Use the AI Trade Finance Assistant

Get custom financing recommendations and LC readiness checklists based on your shipment value, buyer country, and payment terms. The AI builds a cash flow model showing your net position.

Open Finance Assistant →