Quick answer
If a shipment is held at the border, your import finance repayment clock usually keeps running even though you can't sell the goods. Storage, demurrage and inspection costs pile up at the same time. Tell your lender early and ask about extending the drawing, check whether your facility can fund the extra landed costs, and make sure duty and GST are ready so the goods can be released the moment the hold lifts.
Key points
- Most import finance drawings have a fixed term that doesn't pause for border delays.
- Holds add storage, demurrage, inspection and broker costs on top of the landed cost.
- Duties and GST generally apply to imports and must be dealt with before release.
- Eligible importers can defer import GST to their monthly BAS through the ATO.
- An early, honest call to your lender usually buys more time than a late one.
When a shipment is held at the border, the repayment clock on most import finance keeps ticking even though you can’t sell a single item. At the same time, storage, demurrage and inspection costs start adding up. The fix is to act fast: call your lender about extending the drawing, check what extra costs the facility can fund, and have duty and GST ready so the goods are released the moment the hold lifts.
A held container is stressful, but it’s rarely a disaster if you handle the money side in the first few days.
Why does a held shipment hurt your import finance so much?
Because import finance is built around a timeline. When you set up a facility, each drawing usually has a set term, often linked to how long your stock normally takes to arrive and sell. The lender paid your supplier on day one, and expects repayment from your sales a set number of days later.
A hold breaks that timeline in three ways:
- Sales are delayed, so the money you planned to repay with doesn’t arrive.
- Costs increase, with storage, demurrage, broker fees and possibly inspection or treatment charges.
- Cash you need is tied up, often in the same weeks as your next order deposit or BAS.
| What a hold changes | Typical effect | What to do |
|---|---|---|
| Sale date | Pushed back by days or weeks | Tell your lender and customers early |
| Repayment due date | Usually unchanged | Ask for an extension before it falls due |
| Landed cost | Rises with storage and demurrage | Check if the facility can fund it |
| Duty and GST | Still payable before release | Have the funds ready, or use deferred GST if approved |
| Next order | May need a deposit while this one is stuck | Consider delaying or funding separately |
What are the usual reasons goods get held?
Your customs broker will usually know quickly, but these are the common culprits:
- Documentation problems. A mismatch between the commercial invoice, packing list and import declaration. The Australian Border Force’s how to import page explains the declarations needed to clear goods from customs control.
- Examination. Goods selected for physical inspection.
- Biosecurity. Inspection, treatment or extra documentation, especially for timber, food, plant material and some seasonal risk goods.
- Unpaid duty and GST. The ABF’s cost of importing goods page notes that, generally, all goods imported into Australia are liable for duties and taxes unless an exemption or concession applies, and that GST applies to imported goods unless an exemption covers them.
- Port congestion and logistics. Not a hold as such, but the cash effect is the same.
Knowing the cause tells you how long it’s likely to take, which is the first thing your lender will ask. It also tells you whether the problem is yours to fix, such as a corrected declaration, or simply a queue you have to wait out.
What should you do in the first 48 hours?
Find out exactly why. Ask your broker for the specific reason, what’s needed to clear it, and a realistic timeframe.
Call your lender. Explain the hold, the cause and the expected delay. Ask whether the drawing can be extended, whether extra costs can be added to the facility, and what it needs from you. Lenders deal with delays all the time; what they dislike is finding out on the due date.
Tally the extra costs. Storage and demurrage often grow daily. Get the rates from your forwarder and work out what a week, two weeks and a month would cost.
Check your cash for release. Make sure duty, GST and broker fees can be paid the moment the hold lifts, so the goods aren’t held a second time for payment.
Tell affected customers. Especially anyone with pre-orders or contracts.
If you need to fund the extra costs or bridge the gap to your next sale, send us a quick enquiry with the shipment value and expected delay. A real person will call to talk it through.
Can deferred GST ease the pressure?
It can make a real difference for regular importers. The ATO’s deferred GST scheme lets approved importers pay the GST on taxable imports through their monthly business activity statement instead of at importation. To be eligible you need an ABN, GST registration, and to lodge and pay your BAS electronically each month, and you must apply for approval.
It won’t fix a hold that’s caused by paperwork or biosecurity, and it isn’t something you can arrange overnight. But it removes one cash payment from the border, which matters most precisely when other costs are piling up. If you import regularly and haven’t looked into it, it’s worth raising with your accountant once the current shipment is sorted.
How can you fund the gap while the goods are stuck?
The right answer depends on how long the delay is likely to be and what your facility allows.
- Extend the existing drawing. The simplest option if your lender agrees. Expect some extra cost for the extra time.
- Fund the landed costs through the facility. If your import finance covers freight, duty and charges, ask whether storage and demurrage can be added.
- A short-term business loan. A short-term loan can cover storage, duty and the next order deposit while you wait. Unsecured options typically run from $5k to $500k, sized on turnover and bank statements.
- Property-secured funding. For larger or repeated gaps, a property-secured facility from $20k to $5m can sit behind several shipments without per-order paperwork.
- Inventory finance once landed. After release, inventory finance may fund the stock while it sells through.
An illustrative example
Illustrative only. An online homewares retailer imports a container of timber furniture ahead of a spring sale. The supplier was paid through a trade loan with a fixed term. On arrival, the container is directed for biosecurity treatment, and the broker estimates two to three weeks’ delay.
The owner calls the lender the next morning and gets a short extension on the drawing. Storage and treatment costs come to about $8k, which the facility doesn’t cover, so the owner uses a small unsecured loan to pay them along with duty and GST. The spring sale is pushed back a fortnight and pre-order customers are emailed the new date. When the goods are released, the stock sells through over the following weeks, the trade loan is repaid, and the owner applies for deferred GST and adds an extra two weeks of buffer to every future drawing.
How can you protect future shipments from the same problem?
- Build buffer into drawing terms. Ask for repayment terms that allow for a realistic delay, not the best case.
- Get documents checked before shipment. Many holds start with a paperwork error that could have been caught at origin.
- Know your goods’ risk profile. Products with biosecurity requirements need more time and paperwork.
- Keep a cash or credit buffer. A line of credit or spare limit means the next hold doesn’t become a crisis.
- Consider deferred GST if you import regularly and meet the criteria.
Goods stuck on the wharf and cash running thin?
A held shipment is a timing problem: the stock is still yours, still saleable and still worth what you paid. What you need is enough breathing room to get it released and sold without missing a repayment or the next order.
The enquiry takes about 60 seconds and there’s no credit check when you first enquire. Your details aren’t sprayed across a pile of lenders, so the only call you’ll get is from us. A real person who understands import timelines looks at your shipment, your facility and the delay, then calls you. Please fill the form in accurately, including the shipment value and why it’s held, so we can work out the right fix first time.
Frequently asked questions
Does my import finance repayment date change if my container is held?
Not automatically. Most trade loans and supplier payment drawings have a term counted from when the lender paid your supplier or from shipment. If the goods are held, the clock usually keeps running. Many lenders will consider an extension, but you need to ask before the due date.
Can import finance pay for storage and demurrage?
Some facilities fund landed costs beyond the supplier invoice, including freight, duty, GST and broker charges. Whether they'll cover unplanned storage or demurrage depends on the lender and the facility. Ask early, because these charges can grow daily.
What are the most common reasons shipments get held?
Common causes include documentation errors on the import declaration, goods selected for examination, biosecurity inspections or treatment, unpaid duty or GST, and port congestion. A customs broker can usually tell you quickly which one applies.
Will deferred GST help when goods are held?
It can reduce the cash you need at the border. Under the ATO's deferred GST scheme, approved importers report and pay GST on taxable imports through their monthly BAS rather than at importation. You need an ABN, GST registration and monthly online BAS lodgement, and you must apply for approval.
Should I tell my customers about the delay?
Yes, early. Customers who pre-ordered or rely on your stock are usually more forgiving of a delay they hear about upfront. It also protects sales you'll need to repay the finance once the goods are released.