Australia’s reputation for high-quality, innovative manufacturing continues to grow. As more Australian manufacturers expand into new markets, excitement can quickly give way to pressure on cash flow, banking arrangements and the finance function.
Keep it simple: Line up funding early, get your bank onside, and gear up your accounting and finance team for growth and the added complexities of cross-border trade.
- Fund the journey and plan your cash commitments
Big orders and longer payment terms can drain cash. There are two practical avenues:
- Traditional banking and credit solutions: Explore funding from Australian and overseas financial institutions, including overdrafts, trade loans, equipment finance, grants and equity.
- Export Finance Australia (EFA): Government backed loans, guarantees and bonds that help when your bank cannot quite stretch, especially useful for working capital against purchase orders or confirmed contracts (exportfinance.gov.au).
What to do now
- Build a cash flow forecast for the next 12 to 24 months for the target market, covering deposits, progress payments, freight, insurance, duties, warehousing and warranty or service costs.
- Identify funding gaps across the working capital cycle and proactively line up facilities.
Make your banking work for you (not the other way around)
Develop an active relationship with a financial institution (in Australia and or in market) and be explicit about what you need.
- Multicurrency: Open USD, EUR or GBP accounts. Set a clear approach to FX, including pricing currency, hedging tools and accounting treatment.
- Payments and collections: Negotiate terms that match delivery risk (deposit, milestones, final payment). Use instruments that reduce bad debt or slow pay risk (e.g. letters of credit, documentary collections or trade credit insurance).
- Partnerships that unlock lending: Many banks partner with EFA guarantees to provide extra working capital for export contracts. Ask your banker how they use this in practice.
What to do now
- Set up the accounts you need.
- Map your order to cash process step by step (quote → order → manufacture → ship → invoice → collect).
- Implement a practical FX policy your finance team can follow.
- Tune your accounting and finance
Make finance the engine room of your export push:
- Recognise revenue aligned to delivery: Match contract delivery terms to revenue recognition so you protect margins and produce meaningful management reporting.
- True landed cost: Update standard costs for freight, insurance, duties, brokerage and longer lead times. If you do not recalculate, margins will erode.
- Multicurrency AR and AP: Quote, invoice and collect in the buyer’s currency. Automate market rate feeds and revaluations so month-end is smooth.
- Funding and grants calendar: Track loan drawdowns, repayments and grant milestones against cash flow to avoid timing crunches. This works well as an ERP task list.
What to do now
- Run a half-day export readiness workshop with finance, sales, operations and your freight partner, and agree clean ownership for pricing, FX, documents and collections.
Set up the right structure (keep it simple and scalable)
Start with the lightest workable model and scale as you grow.
- Distributor or agent: Fast to market and low overhead. Use clear contracts covering territory, pricing, brand protection, termination and post-termination stock.
- Your own entity: Better control over service and brand once volumes justify it. Plan for local tax, payroll and compliance, and align transfer pricing and intercompany charges.
- Don’t forget the basics: Protect IP, refresh insurance, and check tax impacts at home and in market. Getting advice across both jurisdictions prevents surprises.
What to do now
- Consult taxation and legal experts across both jurisdictions to choose a structure aligned with strategy and risk appetite.
Mitigating risk and navigating overseas complexity requires coordinated support. Legal, financial and business advisors help you make informed decisions, reduce risk exposure and capitalise on opportunities you might otherwise miss.
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