Manufacturing News

Westpac and EFIC working together to support Australian exporters

Westpac and the Export Finance and Insurance Corporation (EFIC) have signed a Master Working Capital Guarantee Facility to help Australian exporters gain additional working capital to finance export contracts.

The agreement will reportedly enhance Westpac’s suite of export financing and risk solutions designed to support customers seeking to export goods or services who require access to both pre and post shipment funding.

“The export working capital guarantee, provided by EFIC, will enable Westpac customers to finance export contracts that they couldn’t otherwise fund,” said Westpac head of trade, Peter McMurrich.

“The agreement with EFIC will enable us to assist more businesses with their export finance needs and enhances the extensive range of export solutions that we offer. The guarantee supplements our trade finance capabilities and reflects our commitment to helping our customers grow their export business.”

The role of EFIC, the Australian Government’s export credit agency, is to help Australian exporters overcome financial barriers.

Export working capital guarantees from EFIC to Westpac will reportedly enable more of Westpac’s small-to-medium-sized customers to access additional working capital to deliver on their international sales contracts.

Andrea Govaert, EFIC’s Executive Director, SME said, “A shortage of working capital to fulfil a new export contract or multiple export contracts is often a problem for small and medium-sized exporters. Guarantees issued under the agreement with Westpac can help Australian businesses to finance their export contracts and keep growing their businesses internationally.”

EFIC’s export working capital guarantee is a flexible guarantee which can support a single export contract or many export contracts with different buyers. Generally, the guarantee is for a minimum of $500,000.

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