Travelex and Export Finance and Insurance Corporation (EFIC) have agreed to double the overall limit of the EFIC foreign exchange facility guarantee, enabling Travelex to provide eligible exporters with higher foreign exchange trading limits without the need for additional security.
EFIC is the Australian Government’s export credit agency, assisting Australian exporters grow their business in overseas markets.
Established in March 2010, EFIC’s foreign exchange facility guarantee has assisted eligible Travelex customers to protect their profits by increasing their foreign exchange trading limits and expanding their hedging programs.
The increased guarantee limit responds to market demand and importantly, the customer is not required to provide additional security to Travelex in order to take advantage of the guarantee.
According to Simon Glendenning, General Manager, Mid Market at Travelex Global Business Payments, the guarantee was instituted to directly assist exporters who found themselves unable to fully hedge their sales because they had reached the limit of their existing foreign exchange facilities.
While many providers have been reducing credit lines for small business in the last 12 months, Travelex recognises the need for SME exporters to be able to hedge their sales. Consequently, Travelex is working with EFIC to double the existing hedging facilities that can be accessed by SMEs without the need for any upfront collateral.
Mr Glendenning adds that the new arrangement now gives SME exporters greater flexibility with their hedging arrangements, providing certainty over the value of their invoices and their profitability over the long term.
Andrea Govaert, EFIC’s Executive Director SME and Mid-Market says that EFIC’s foreign exchange facility guarantee broadens the ways in which EFIC can help exporters manage the risks of international trade and protect their export business from loss due to events beyond their control.
To apply for this new service, exporters need to be a Travelex customer and must also meet criteria associated with this product.