Home > EFIC partners with signs Master Working Capital Guarantee Facility with Commonwealth Bank

EFIC partners with signs Master Working Capital Guarantee Facility with Commonwealth Bank

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Export Finance and Insurance Corporation (EFIC) has partnered with Commonwealth Bank in signing a Master Working Capital Guarantee Facility to help Australian exporters gain additional working capital to finance export contracts.

Small to medium enterprise (SME) exporters are usually faced in stretching their working capital in order to meet the many demands of a growing business, from developing business opportunities, winning contracts and delivering on their contracts.

In this partnership, EFIC can provide a guarantee to Commonwealth Bank, which enables the Bank to lend their SME customers the additional working capital they need to finance their international sale contracts.

“The benefit of this arrangement between Commonwealth Bank and EFIC is that exporters can access working capital finance, without having to provide as much security for the loan as we would require without EFIC’s guarantee,” says Tony Sacre, Global Head of Trade Finance and International Payments, Commonwealth Bank.

“In today’s climate, where exporters are already struggling with the added pressure of a strong Australian dollar, this sort of facility is particularly important to ease the pressure on cash flow and underpin growth. We hope to work with many exporters moving forwards, providing them with the right financial requirements to help them stay competitive.”

EFIC are the Australian Government’s export credit agency, which work towards helping Australian exporters overcome financial barriers.

“Some of the exporters EFIC has supported have such potential with innovative products and incredible business acumen, but their finances are absolutely stretched getting the business to where they are, and the value of their assets is insufficient to enable the lender to provide additional finance,” says Andrea Govaert, EFIC Executive Director of SME and Mid-Market.

“Guarantees that EFIC issues under the agreement with Commonwealth Bank can help Australian businesses to finance their export contracts and keep growing their businesses internationally.”

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