ECA

Meeting your supply chain cashflow needs with Efic

20.02.2019 Efic

Finding new opportunities and partnerships to grow your business is exciting – but also comes with key financial challenges. As an export supply chain business, you may find that delivering on your contracts can put extra strain on your operating costs and cashflow.

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.

Export Loans

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.

Guarantees

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.

Bonds

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.

For more information on how you can take advantage of export supply chain opportunities and the finance options for your business, download our free Supply chains: building international opportunities eBook today.
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