The Government’s Export Finance and Insurance Corporation (Efic) has introduced a new loan to support SME exporters as they innovate and grow. The loan is designed for businesses that have export contracts or purchase orders with buyers overseas, but are unable to get a bank loan to secure these and satisfy their cashflow needs.
To be eligible, your business must be an Australian registered company with an annual turnover of $250K-$10 million and have been trading for at least two years.
The goods or services that you are exporting can be made up of Australian-owned intellectual property, services or product design, or components and raw materials manufactured or produced in Australia. Labour and manufacturing costs should be incurred in Australia.
The loan has some useful features including:
- Flexible 3-12 month loan terms to suit your cash flow
- Fixed interest rate for easier budgeting
- Quick access to funds with formal approval within around seven business days and funds available two days later
- The option to receive conditional approval while you wait for purchase orders or export contracts to be finalised.
Note that Efic will only approve a loan if your bank is unable to provide funding to support your export contracts.
Other support for exporters
Export development grants are also available to Australian businesses developing overseas markets. See our article on Export Development Grants for eligibility criteria and the expenses which can be claimed.
Please get in touch if you would like to know more.