Export Finance and Insurance Corporation (EFIC) is helping New South Wales exporter Designer Concrete Coatings Pty Ltd (DCC) to meet international demand and market its products more widely.
EFIC is the Australian government’s export credit agency, assisting Australian exporters to grow their business in overseas markets.
The Ingleburn-based DCC exports Designer Beadcrete, a patented reflective interior swimming pool finish that creates light refraction and attractive light effects in pool water.
DCC is experiencing a growing demand for the product mainly at resorts and major hotels in Europe, Asia-Pacific and Mauritius with projects including pool finishes for the Velassaru resort in the Maldives, the Sofitel in Fiji as well as several luxury resorts in Thailand and Turkey.
EFIC provided a $300,000 working capital guarantee to ANZ, enabling the bank to lend the same amount to DCC to ease its cash flow. The guarantee known as EFIC Headway, enables small and medium-sized exporters such as DCC to access additional working capital assistance from their bank.
The working capital guarantee was necessitated by extended payment terms required by DCC’s overseas buyers, especially those in Europe who are still feeling the effects of the global financial crisis.
As a result, DCC’s cash flow has become stretched at a time when the company is keen to explore new markets through avenues such as international trade fairs, and is also considering establishing a manufacturing plant in Europe to reduce the lead time for orders.
DCC’s Managing Director Tom Kolakovic says that the demand for Designer Beadcrete has snowballed in the last few years, but it has become difficult for them to manage their cash flow with buyers demanding generous terms of credit.
He adds that the support of EFIC and ANZ will take pressure off their cash flow so that they can meet international demand as well as have the working capital for marketing and exploring future overseas expansion.
EFIC’s Executive Director, SME, Andrea Govaert comments that managing cash flow is a constant challenge for growing SME exporters.
EFIC works with Australia’s leading banks to help successful Australian exporters overcome working capital shortfalls and achieve further international growth.