Export Finance and Insurance Corporation (EFIC) has signed a Master Working Capital Guarantee Facility with Westpac to help Australian exporters gain additional working capital to finance export contracts.
As the Australian Government’s export credit agency, EFIC provides a range of finance and insurance solutions for Australian exporters to grow their business overseas.
The agreement enhances Westpac’s suite of export financing and risk solutions that support customers seeking to export goods or services while requiring access to both pre and post shipment funding.
EFIC’s export working capital guarantee is a flexible guarantee, which can support a single export contract or multiple export contracts with different buyers. Generally, the guarantee is for a minimum of $500,000.
Peter McMurrich, Head of Trade, Westpac comments that the export working capital guarantee will enable Westpac customers to finance export contracts that they cannot otherwise fund.
He adds that the agreement with EFIC will enable Westpac to assist more businesses with their export finance needs, enhancing their extensive range of export finance solutions.
EFIC helps Australian exporters overcome financial barriers in their overseas export commitments. Export working capital guarantees from EFIC to Westpac will enable more of Westpac’s small to medium-sized customers access additional working capital to deliver on their international sales contracts.
Given that a shortage of working capital to fulfil a new export contract or multiple export contracts is a problem for small and medium-sized exporters, guarantees issued under the agreement with Westpac can help Australian businesses finance their export contracts and grow their businesses internationally, according to Andrea Govaert, EFIC’s Executive Director, SME.