Global markets are a major source of growth for Australian manufacturers, but they also introduce new challenges.
Whether supplying international customers directly or participating in global supply chains, manufacturers often need to invest before revenue is received. Production costs, equipment purchases, supplier payments and shipping expenses can all arise months before customer payments arrive, creating pressure on cash flow and working capital.
For manufacturers looking to scale, access to the right finance can be just as important as securing the opportunity itself.
This is where Export Finance Australia can play a critical role.
The right finance partner
Export-related growth can require different types of finance depending on a manufacturer’s circumstances.
Working capital facilities can help businesses cover the costs of producing goods before payment is received. Equipment finance can support investment in machinery and technology needed to increase production capacity. Guarantees can help strengthen existing banking arrangements by sharing risk with commercial lenders and unlocking additional support.
In many cases, manufacturers will first approach their bank. However, export opportunities can involve longer payment cycles, larger contract values or offshore risks that sit outside traditional lending parameters. This is where Export Finance Australia can help.
Export Finance Australia helps close this gap, supporting manufacturers where traditional options may be limited. Support may be provided directly or in partnership with commercial banks and other government agencies, helping ensure manufacturers can access the finance they need when they need it.
Different finance solutions for different growth stages
South Australian manufacturer Seed Terminator provides one example of how a direct loan can support production growth.
The business developed an innovative product, the Seed Terminator – a small, multi-stage hammer mill that attaches to combine harvesters for the agricultural sector – and was experiencing growing demand from customers in Europe and North America. To fulfil orders and continue expanding internationally, the business needed additional working capital to fund manufacturing and delivery while waiting for customer payments.
Through a series of loans from Export Finance Australia, Seed Terminator was able to increase production capacity and support the delivery of equipment into international markets.
“Export Finance Australia’s support over the last few years has been critical. Without its help, we would not be where we are today. We would not have had the financial backing or the support to enter the European and Canadian markets because of the time lag with payments.”
– Mark Ashenden, Co-founder and Executive Director, Seed Terminator
In Seed Terminator’s case, this direct loan helped close the gap between manufacturing costs and customer payments, providing the working capital needed to support growth.
Russell Mineral Equipment (RME) demonstrates a different financing approach.
As a global manufacturer and supplier of mill relining technology, RME required support that complemented its existing banking facilities and enabled it to continue supporting customers worldwide.
Rather than providing a direct loan, Export Finance Australia issued a guarantee that supported RME’s existing lender, helping the business access the finance required through its bank to continue serving customers across global markets.
“We see the support we get from Export Finance Australia as a long-term strategic financial arrangement that allows us to continue to operate and grow in this global world.”
- John Howard, Chief Financial Officer, Russell Mineral Equipment
The difference between the two examples highlights the flexibility of export finance. For some manufacturers, the right solution may be a direct loan that provides working capital to fulfil export orders. For others, it may be a guarantee that strengthens existing banking relationships and supports larger or more complex international operations.
Helping manufacturers compete globally
Access to the right finance does more than support day-to-day operations. It can give manufacturers the confidence to invest in new equipment, expand production capability, enter new markets and pursue larger international contracts.
As Australian manufacturers continue to compete in global markets, financing structures that align with export growth are becoming increasingly important.
For manufacturers, the question is less about whether global opportunities exist, and more about having the financial capacity to deliver when they do.
Learn more about how Export Finance Australia supports Australian manufacturers to grow globally:
exportfinance.gov.au/manufacturing
1800 093 724
