Quick answer
Import finance secured by property is a short-term business loan, secured by a caveat or mortgage over real estate you own, that pays the supplier balance, freight, customs duty, import GST and port charges so goods can be released and sold. The ABF says duties, taxes and charges must be paid before release, so timing matters. The loan is repaid from sales or the GST credit.
Key points
- The ABF requires duties, taxes and charges to be paid before goods are released
- Import GST is usually claimable as a credit, which can be part of the exit
- Monthly BAS lodgers may apply to defer import GST to their BAS
- Storage and container charges keep running while goods sit at port
- Property security means the goods themselves never need to be pledged
- Amounts
- $20k – $5m
- Usual structure
- Caveat or second mortgage
- Speed
- Within 24–48 hours possible once documents are in
- Assessment
- No formal valuation required
An import shipment has a cash shape that most bank facilities were never designed for. You pay a deposit at order, the balance before the goods leave the factory, freight on the way, and then a lump of duty, GST and port charges before the Australian Border Force will release anything. Only after that can you start selling.
When one of those payments lands before the money is there, the goods wait at the wharf and storage charges start. A short loan secured on property you already own can cover the gap between landing and selling.
What has to be paid before goods are released?
The rules are strict. The ABF says all goods imported into Australia are liable for duties and taxes unless an exemption or concession applies, and that you must pay all applicable duties, taxes and charges before the goods can be released.
A full Import Declaration is needed when goods have a combined value over $1,000 and are being cleared into home consumption. It is lodged by the importer or a licensed customs broker and sets out the tariff classification and customs value of the goods. On top of duty and GST, the ABF lists an import processing charge for these declarations.
The typical cash calls on a container:
| Cost | When it usually falls due | Who you pay |
|---|---|---|
| Supplier deposit | At order | Overseas supplier |
| Supplier balance | Before shipping or against documents | Overseas supplier |
| Sea or air freight and insurance | Before or on shipping, depending on terms | Forwarder or carrier |
| Customs duty | Before release | Paid through your broker’s declaration |
| Import GST | Before release, unless deferred | As above, or via monthly BAS if approved |
| Import processing charge | With the declaration | As above |
| Biosecurity inspection or treatment | If directed | Department and service providers |
| Port storage and container charges | Daily once free time ends | Terminal, shipping line or transport operator |
Can the import GST be deferred?
For some importers, yes. The ATO’s deferred GST scheme lets approved businesses defer GST on taxable imports and pay it through their monthly BAS instead of at the border. To be eligible you need an ABN, GST registration, monthly BAS lodgement, and to lodge and pay electronically. The ATO also says you may not be eligible if your lodgements or payments are not up to date.
Two timing traps to know about:
- Quarterly lodgers must switch first. The ATO says the switch to monthly reporting takes effect from the start of the next quarter, so it cannot rescue a container already on the water.
- Deferral is not forgiveness. Deferred GST appears on your monthly BAS at label 7A, and if you are entitled to a full credit, the ATO says you claim it at 1B for the same month. For a fully creditable import that largely nets out, but you must lodge and pay on time to stay in the scheme.
If you are not in the scheme, the import GST has to be found upfront and is then usually claimed back as a credit, which makes a natural, dated exit for part of a short loan. Our page on waiting on a tax refund explains how lenders treat a refund as a repayment source.
What delays release, and what does that cost?
The Department of Agriculture, Fisheries and Forestry issues the importer a direction releasing goods from biosecurity control, and that direction can instead require inspection, treatment, isolation or a hold. The department notes that higher-risk cargo faces heightened measures on arrival. Any of those adds days.
Meanwhile, terminals and shipping lines charge storage and container fees once the free period ends. Those charges are commercial, not government fees, and vary between ports and operators, but they all have one thing in common: they grow every day the duty is unpaid. That is the real cost of waiting for a bank.
How import finance secured by property works
- Get the numbers from your broker. Duty, GST and charges estimates, plus the supplier and freight invoices.
- Enquire with the property details. Address, ownership, what is owing on it, the amount needed and how you will repay.
- Structure. A caveat loan for a fast, short need; a second mortgage where you keep your bank loan and want more time; a private first mortgage over debt-free property for a larger or longer deal.
- Letter of Offer, sign, settle. Funds can go to your broker’s trust account, the supplier or your business account.
- Goods released and sold. You repay from sales, the GST credit, or both.
Got a container landing this week? Start an import funding enquiry now and keep reading while a specialist reviews it.
Who it suits
- Importers with a larger-than-usual order, a new product line or a new major customer.
- Businesses whose bank trade facility is fully drawn or under review.
- Owners who would rather not give a stock lender a charge over the goods and the whole business.
- Importers facing a one-off cost spike: higher freight, a duty classification change, or a held container.
- Businesses in transition to monthly BAS and deferred GST, who need to fund one or two shipments in the meantime.
If you run an import or wholesale business, see the sector view on wholesale and import.
When this isn’t the right move
- Every shipment, every month. A recurring import cycle belongs on a bank trade facility, a supplier credit arrangement or deferred GST, not a run of short secured loans.
- Goods you can’t sell quickly. If the stock takes a year to clear, the loan term and cost will not suit. Our page on stock and inventory deals with longer sell-throughs.
- A small duty bill with a cooperative broker. Some brokers can help with timing on modest amounts. Ask first.
- No equity in property. Without real estate security, look at trade finance or the supplier extending terms.
- Unclear landed margin. If duty, freight and charges have eroded the profit, more borrowing makes it worse.
For the broader trade-off, read secured vs unsecured business loans.
What it costs (without the guesswork)
We don’t publish pricing for import loans. Each one is priced on the property, how much is borrowed against it, the term and the strength of the exit, with the aim of landing the best price that deal can justify. Here is what you pay for:
- Interest, which can be paid upfront at settlement or added to the loan balance. Either way the business has no monthly instalments while the goods are cleared and sold.
- An assessment fee, which changes from loan to loan and is printed on your Letter of Offer.
- Legal and registration costs for the security, and later its removal.
No formal valuation required, which keeps both cost and days off the timeline. Second-ranking security such as a caveat or second mortgage costs more than a first mortgage, reflecting the lender’s position behind the bank.
Put the loan cost beside the daily storage and container fees and the margin lost if your customer cancels. That is the comparison that matters.
Documents you’ll need
- Identification for borrowers, directors and guarantors.
- Property details and a current statement for any existing mortgage.
- Commercial invoice, bill of lading or air waybill, and the broker’s duty and GST estimate.
- Purchase orders or customer contracts showing where the goods are going.
- Company or trust details where relevant.
How fast
Funding is possible within 24 to 48 hours for up to $5m once documents are in, and $20k to $250k secured on property is possible same day. Imports are often a race against the end of free time at the terminal, so begin when the ship sails, not when it berths. If you need same-day funds, see same-day business loans.
Illustrative example: an indent order for a Sydney furniture importer
Illustrative example: A Western Sydney furniture importer has two containers landing with $210,000 to pay: the supplier balance of $140,000, freight of $18,000, and duty, GST and charges estimated by the broker at about $52,000. The business is a quarterly BAS lodger. The director owns a townhouse worth around $1,000,000 with $520,000 owing. At an illustrative 70% band on total debt, the townhouse supports about $700,000 in total, leaving headroom of about $180,000. The business funds $40,000 itself.
| Net-funds waterfall | Amount |
|---|---|
| Total to pay before release | $210,000 |
| Less business’s own cash | $40,000 |
| Loan principal needed | $170,000 |
| Plus capitalised interest over 4 months | set per deal |
| Plus assessment fee and legal costs | set per deal |
| Headroom check | within the $180,000 illustrative headroom |
| Exit | Sales to three retail customers, plus the import GST credit on the next BAS |
The loan settles in two days, the broker lodges the declaration, and the containers are released before storage charges become serious. The import GST credit comes back on the quarterly BAS, and sales over the following months clear the balance. The importer then switches to monthly reporting so future shipments can use deferred GST. For local title and security notes, see our Western Sydney and Parramatta page.
What to ask your customs broker before you borrow
A good broker can save you money before a lender is involved. Ask these questions while the goods are still at sea:
- What is the tariff classification, and is any concession available? The ABF says duty applies unless an exemption or concession applies, so confirm whether one does before you size the loan.
- What will the total payable be on the declaration? Duty, GST and the processing charge, in one figure.
- How much free time does the terminal allow, and what are the daily charges after it? This tells you the true cost of a delay.
- Is a biosecurity inspection likely for these goods? If so, add the days to your loan term.
- Can payment be made directly from settlement funds to your trust account? It removes a step and a day.
Bring those answers to your enquiry and the loan can be sized once, not twice.
Related situations
Imports often collide with other deadlines. If you are also behind with suppliers at home, read supplier payments. If the shipment supports a large new contract, see funding a big contract with property security. If tax is also overdue, see paying an ATO debt with property equity.
See if you qualify before the free time runs out
Every day at the terminal adds cost, so the useful answer is a fast one. There is no credit check when you enquire. Your details stay with one direct lender, fundU, instead of going out to a broker’s panel. A specialist reads the enquiry, not an algorithm. Give us accurate figures on the property, the loans already on it and when the goods will sell, and the answer you get first is the one that holds.
Get your shipment funding enquiry in now, or read more about secured business loans.
Frequently asked questions
My container lands at Port Botany on Friday and I need $85k for duty, GST and the supplier balance. I own a unit in Parramatta. Can this be done in time?
Possibly. Amounts from $20k to $250k secured on property are possible same day once documents are in. Send the property details, what is owing on it, and your broker's estimate of duty and GST as soon as you have them.
Do I have to pay customs duty and GST before I can collect my goods?
Yes, for goods cleared through an Import Declaration. The ABF says you must pay all applicable duties, taxes and charges before the goods can be released.
When is an Import Declaration required?
The ABF says a full Import Declaration is needed when goods have a combined value of over $1,000 and are cleared for home consumption. Your licensed customs broker usually lodges it for you.
Can I get the import GST back?
Generally, a GST-registered business importing goods for its business can claim the GST as a credit on its BAS. Your accountant should confirm your position. The timing of that credit can be part of the plan to repay a short loan.
What is the deferred GST scheme?
The ATO says it lets approved importers defer GST on taxable imports and pay it through their monthly BAS instead of at the border. You need an ABN, GST registration, monthly BAS lodgement and electronic lodging and paying, among other conditions.
I lodge BAS quarterly. Can I join the deferred GST scheme for this shipment?
Probably not in time. The ATO says quarterly lodgers must switch to monthly reporting before applying, and the change takes effect from the start of the next quarter. Fund this shipment, then plan for the next.
My goods are being held for a biosecurity inspection. Can I still borrow?
Yes. Biosecurity holds add time and cost but don't change the security, which is your property. Allow for inspection or treatment time in the loan term.
Can the loan pay my overseas supplier's balance before shipping?
Yes. The funds can be used for the supplier balance, freight, insurance, duty, GST and port charges. Funds can be paid to you or directly to the parties per the settlement statement.
Do I need to pledge the goods or give a general security over my business?
No. The security is real estate. The goods remain yours to sell, discount or move without needing a lender's consent.
How long a term should I choose for an import loan?
Long enough to land the goods, clear them, sell enough to repay and absorb a delay. For most single shipments that is three to six months. A first mortgage over debt-free property can run from 1 to 24 months.
I import every month. Is a property-secured loan the right long-term answer?
Usually not. Repeated imports suit an ongoing trade facility. A short property-secured loan is best for a one-off spike, a larger order or bridging until a bank facility is in place.
Will you need my financial statements?
The decision rests mainly on the property and the exit. You will still need identification, property details, shipping documents and evidence of how the loan will be repaid.
Can I borrow if I have an ATO debt from previous imports?
ATO debt is considered case by case. Equity and a clear exit carry the most weight, and the ATO's lodgement conditions may also affect your eligibility for deferred GST.