As Australia’s export credit agency, Efic can provide finance to a range of businesses, including those that:
- provide products or services to a company in an export supply chain
- provide products or services directly to a company that is exporting
- sell directly to an overseas company that is part of a larger global supply chain.
In our experience, there are some common financial scenarios that you may face as a supply chain business.
Scenario 1: Delivering on large orders
As your supply chain business grows, the size of your orders will too – and that’s great news for your revenue. But larger orders generally mean an increase
in materials, labour and shipping costs. And it’s likely that you won’t receive payment until you’ve delivered your goods or services – which means
you’ll need additional working capital to fulfill your contract.
Scenario 2: Purchasing equipment
You may need more equipment to meet growing customer demand. But your bank may not be able to provide finance for capital expenditure if you can’t meet
its security requirements, or if you’re doing business in a market with a high-risk profile.
Scenario 3: Managing ongoing payments throughout the contract
If your company is providing goods or services to either domestic or international supply chain customers, you’ll often be required to provide a bond.
Finance solutions to support your growth
Your bank may be unable or unwilling to provide finance, due to the risks inherent in doing business overseas – especially if an order is through a new
customer or headed to a region with a high-risk profile. That’s where Efic’s Government-supported finance solutions can help.
If your business needs finance for a contract that’s part of an export supply chain, or you need capital expenditure to support increases in production,
you could be eligible for an Efic export loan or line of credit. The export loan is available for both pre and post-shipment finance and can be tailored
to meet the costs of your order and to cover your payment terms. A line of credit means you can make multiple drawdowns during the loan term and make
repayments when your supply chain client pays you.
Efic can provide a guarantee on your behalf to your bank. This can be for finance both before and after you ship your products or deliver your services.
Your bank will then set up an account that allows you to use your customer payments to make loan repayments.
A bond facility can help your business secure your next export-related project. We can work with your bank to provide a guarantee to support a bank-issued
bond or provide a bond directly to your buyer.