3 tips for financing growth

1. Minimum cash cover for contract security guarantees

Free up cash with the right finance solution

In the mining and construction sectors, cash cover for bank guarantee requirements ranges between 50 to 100 per cent.

At Export Finance Australia, we provide contract security, also referred to as bank guarantees, at a minimum of 20 per
cent cash cover. This could free up cash and potentially reduce the need for further working capital finance.

2. Negotiating advanced payments

Secure upfront payments to cover mobilisation costs.

To secure an advanced payment, you may need to provide an advanced payment guarantee.

Our advance payment bonds act like a bank guarantee. These finance solutions could support your business to meet a buyer’s advance payment conditions without having to tie up a large portion of your working capital.

3. Broader capability assessment criteria

Get access to additional finance outside your bank's appetite

As an SME, your historical financial statements and balance sheet equity may not reflect the strength of your business or
its capacity to service a loan or contract.

As part of our assessment process, we consider cash flow, your business’s policies and procedures, and capabilities to deliver new contacts based on historical performance on similar contracts. This due diligence could also be reassuring to the mining companies and prime contractors issuing these contracts.

If you would like to learn more about the options for your business or how we can support your next contract, call us on 1800 093 724.

Explore more about our solutions for businesses in the mining and construction services sectors here.