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How a guarantee from Export Finance Australia could help your business take on the world

Does your business have an opportunity to expand internationally or enter into a contract with an international buyer?

At Export Finance Australia, we’ve helped many businesses make that opportunity a reality with our guarantees.

Perhaps your business has a specific export-related transaction, but you need finance to deliver it. Or maybe you’re looking to branch out into new international markets.  

At Export Finance Australia, we could help you take on the world by providing your bank with the level of security it needs to provide finance.  

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How do bank guarantees work?    

When you’re exporting goods or services, your expenses can be higher and may be due before you receive payment. You’ll often need to pay for materials, assets, suppliers, shipping and staff. In addition, payment cycles in international markets can be longer than domestic cycles, so your working capital could be tied up for months or even years. 

When securing finance to cover additional working capital requirements, it is important that your financiers are on side. However, if your business doesn’t have the necessary collateral that your bank needs to use as security for a business loan, it may not be able to help.  

At Export Finance Australia, we can work with your bank and provide a guarantee on your behalf. This support can give your bank the security it needs to approve finance for your business.  

Supporting Australian businesses to meet security requirements  

We helped New South Wales frozen beef wholesaler, Oz Nature, with an Export Working Capital Guarantee to give its bank the security required to approve finance. Oz Nature used the finance to increase its production capacity and ensure shipping and distribution of its Wagyu products continued smoothly. 

Businesses often approach us directly. Other times, banks may recommend us to a business as a way for them to get a guarantee for a loan. 

For example, Westpac recommended us to Australian manufacturer, PCT Global, when it was seeking finance to sell its EnduroShield® easy clean treatments to US home improvement giant, Home Depot. The business used an Export Finance Australia guarantee to secure finance to purchase extra materials and packaging needed to fulfil this contract. 

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How to apply for a guarantee   

At Export Finance Australia, in order for us to provide you with a guarantee, it must be related to an export-related transaction. This could include exporting goods or being part of an international supply chain. 

When you recognise a need for additional finance, it is important to start conversations with your financiers early.  

Find out more 

To find out more about whether a guarantee might be the right solution for your business, visit our guarantees page or call our helpful team on 1800 093 724.