EFIC initiative helps SME exporters make headway
(7 July 2006 – Australia) The Australian government’s Export Finance and Insurance Corporation (EFIC), which is mandated to "support the growth of Australian businesses internationally", has launched its EFIC Headway product.
The aim of the product is to boost access to working capital for SME exporters by up to 20 percent.
EFIC Headway is in effect a guarantee from EFIC to participating banks that enables them to lend additional funds to SMEs without the need to obtain additional security.
EFIC explained that the product allowed qualifying SME exporters who have reached their financier’s maximum capacity, to borrow additional funds provided the additional amount does not exceed their annual export turnover.
The product was developed in association with Westpac, which also piloted the product. HSBC, ANZ, National Australia Bank, Commonwealth Bank, and BankWest have all signed up as distributors of EFIC Headway, and more banks are expected to follow.
Development of the product was driven by EFIC director, SME Business Development, Sunil Aranha.
The product was launched this week by deputy prime minister and minister for Trade, Mark Vaile, who described EFIC Headway as an "important initiative to assist Australian exporters grow their businesses and in turn strengthen the economy".
"The product is one part of Australia’s co-ordinated trade strategy that seeks to maximise Australian exporters’ success in the global market. And this means less export opportunities lost to offshore competition due to working capital shortages," he said.
EFIC Headway is in effect a guarantee from EFIC to participating banks that enables them to lend additional funds to SMEs without the need to obtain additional security.
EFIC explained that the product allowed qualifying SME exporters who have reached their financier’s maximum capacity, to borrow additional funds provided the additional amount does not exceed their annual export turnover.
The product was developed in association with Westpac, which also piloted the product. HSBC, ANZ, National Australia Bank, Commonwealth Bank, and BankWest have all signed up as distributors of EFIC Headway, and more banks are expected to follow.
Development of the product was driven by EFIC director, SME Business Development, Sunil Aranha.
The product was launched this week by deputy prime minister and minister for Trade, Mark Vaile, who described EFIC Headway as an "important initiative to assist Australian exporters grow their businesses and in turn strengthen the economy".
"The product is one part of Australia’s co-ordinated trade strategy that seeks to maximise Australian exporters’ success in the global market. And this means less export opportunities lost to offshore competition due to working capital shortages," he said.
Subscribe