Choosing the right finance product for your business
If you’re looking to finance an export-related project or contract, one of our solutions could work for you.
As Australia’s export credit agency, we’ve helped countless businesses to take on the world. Our financial solutions include loans, bonds and guarantees.
Here’s a guide to help you choose the right solution for your business.
Our customer, Seed Terminator.
Is our Small Business Export Loan right for your business?
If your business had a turnover between $250,000 and $10 million in the last financial year and has been in business for at least two years, our Small business Export Loan could help you:
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enter the export market, expand your existing export business, or move into markets with higher risk
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cover working capital costs or purchase equipment for export-related activities
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promote your goods and services overseas
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offer tourism services to international visitors
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grow your online international business
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join an export-related supply chain.
Our Small Business Export Loan can support early export opportunities to growing export endeavours. It allowed micro-wine business Evoi Wines to ship an order to a new international buyer. It also helped Seed Terminator to sell its build its presence in some of the Northern Hemisphere’s largest grain markets.
Our Export Contract Loan or Export Line of Credit
If your business requires a larger loan or complementary finance in addition to support from your bank, an Export Contract Loan may be right for you. This loan supported the rapid growth of medicine manufacturer BJP Laboratories to fulfil a contract as part of an international supply chain.
Our Export Line of Credit could work for your business if you need to access to funds for multiple expenses over time and to manage cash flow. It enabled 4WD product manufacturer, KickAss Products, to expand into the lucrative US market by funding the purchase of new stocks and setting up third-party logistics in the US.
Our customer, Hall Contracting.
When would you use a bond?
Some countries or businesses require exporters to have a bond before a contract can be awarded. They may require security that will reduce their financial loss if you are unable to fulfil all the conditions of the contract. We can provide a bond directly to your buyer or give your bank a guarantee so they can issue a bond to the buyer.
A bond may enable you to receive an advance payment or provide assurance if you are unable to fulfil your contract. It could also be required by the country in which you’re doing business.
We provided a bond to Hall Contracting, a third generation dredging, civil and marine construction business. It enabled the business to deliver projects in the Pacific Islands, expanding their international presence.
When could a guarantee help?
Do you have an export opportunity but lack the level of security your bank needs to provide finance? We could help by working with your bank to provide a guarantee, to give your bank the security it needs.
For example, when GP Graders, a fruit-grading and packing machinery manufacturer, wanted to sell its equipment to a Turkish buyer, our guarantee gave security to Westpac Banking Corporation (GP Graders’ bank). They provided a guarantee to the buyer’s bank in Turkey, who then financed the buyer to purchase GP Graders’ equipment.
Which product is right for your business?
The right finance solution depends on factors such as:
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the size of your business
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the amount of finance you need
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whether your bank needs additional security to provide you with finance
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how long you need the money for, and when you need to access it
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the country or region you’re doing business with.
Our team can help you determine which finance solution is right for you. Get in touch today to find out how we could support.
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eBooks and guides
Explore our helpful eBooks and guides for support to get started on, grow and finance your export journey.