The Australian Government’s export credit agency, Export Finance and Insurance Corporation (EFIC) has entered into an agreement with online foreign exchange company OzForex to help eligible Australian SMEs better manage their exposure to volatile currency markets.
Supported by EFIC’s guarantee, OzForex will provide exporters with higher limits of foreign exchange hedging, one of the most common ways to protect their profits against sudden shifts in currency exchange rates.
EFIC will offer a guarantee of up to $250,000 per eligible exporting customer enabling OzForex to increase the exporting customer’s hedging facility by the same amount.
A foreign exchange facility can help exporters hedge against currency fluctuations by locking in exchange rates, enabling companies that trade internationally to better protect their profit, and have more capital to further invest in their business.
Exporters who apply for the EFIC guarantee can do so at no additional charge without any need to provide security for it, allowing them to focus on growth strategies and move into global markets.
Using a simple application process online, the eligible exporter will receive approval for an FX facility from OzForex, following which they can request an EFIC FX facility guarantee to increase the trading limit on their facility.
According to OzForex CEO, Neil Helm, the EFIC guaranteed foreign exchange facility represents an excellent tool for exporters managing their profit margins in times of economic uncertainty.
EFIC’s Executive Director, SME & Mid Market, Andrea Govaert adds that EFIC works with SMEs possessing all the attributes for export success but who are often restricted by the amount of collateral they can offer to underpin the growth of their business.
EFIC’s agreement with OzForex helps support SMEs in their export growth.