ECA

Bottle manufacturer typifies buoyant export industry

18.09.2017 Export Finance Australia
Bottle manufacturer typifies buoyant export industry

Australian small and medium businesses (SMEs) are more optimistic about conditions for export than they were six months ago – according to Efic’s latest Exporter Sentiment Index, research which tracks how small businesses are feeling about the Australian export environment.

Of over 1,200 SME exporter respondents, 46 per cent believe the economy will be better in the next 12 months than it was in the previous, indicating strong optimism for the year ahead.

SMEs are also feeling confident about their finances, with 57 per cent of respondents stating they are in a better financial position than 12 months ago, and encouragingly, 63 per cent of Australian exporting SMEs are confident that they will be in a better financial position in the next 12 months.

One company which demonstrates the recent optimism and strong performance for Australia’s exports is Bottles of Australia.

Bottles of Australia is a Canberra-based plastic drink bottle manufacturer and supplies a wide range of plastic bottles to well-known sporting brands, as well as printed promotional bottles for companies, sport clubs, schools and government departments.

As a leading Australian custom drink bottle provider, Bottles of Australia supplies its quality products via its extensive distributor network in Australia and overseas, with customers in Russia, Canada, USA, South Korea, New Zealand, Singapore and Indonesia.

After a very long selection process, Bottles of Australia was appointed as the authorised global bottle supplier for a major well-known sports brand. Under this new arrangement, the business would need to deliver water bottles across 22 countries to 33 of the brand’s local subsidiaries.

Such a significant increase in future sales meant the business needed additional working capital to meet the upfront costs of these larger production volumes. Like many manufacturers, Bottles of Australia has a relatively long working capital cycle, as it needs to make upfront payment for raw materials, manufacturing and delivery before receiving payment from its customers.

With Bottles of Australia’s bank unable to provide the additional finance needed to help reduce the pressure on working capital, the company contacted Efic to see if we had a solution.

Efic was able to provide an Export Contract Loan which provided the business with the additional working capital it needed to deliver on this high-profile new bottle contract.

Being the global supplier for such a major sports brand has not only enhanced Bottles of Australia’s reputation, it has also given the company an advantage when dealing with other buyers.

Download the full Efic Exporter Sentiment Index on the Efic website.

Image: Anton Pemmer, Director & Export Development, Bottles of Australia
Author: Andrew Watson, Executive Director Export Finance, SME 
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