EFIC provided support with a working capital guarantee
New South Wales-based Designer Concrete Coatings Pty Ltd (DCC) was experiencing growing demand from international resorts and major hotels for its reflective interior swimming pool finish, Designer Beadcrete®, a product which creates light refraction and attractive light effects in pool water.
However, DCC’s overseas buyers, especially in Europe, were still feeling the effects of the global financial crisis and many required payment terms of up to 60 days after the product arrived.
As a result, DCC’s cash flow was stretched at a time when the company was keen to explore new markets, through avenues such as international trade fairs, and was considering establishing a manufacturing plant in Europe to reduce the lead time for orders.
Export Finance and Insurance Corporation (EFIC), the Australian government’s export credit agency, provided a $300,000 guarantee to ANZ, enabling the bank to lend the same amount to DCC to ease its cash flow. A guarantee from EFIC enables eligible SME exporters to access additional working capital from their bank to help their export business grow.
‘Demand for Designer Beadcrete® has snowballed in the last few years, but with buyers demanding generous terms of credit, it’s difficult for a small company like ours to manage cash flow,’ said Tom Kolakovic, Managing Director of DCC. ‘The support of EFIC and ANZ will take pressure off our cash flow so we can both meet international demand and have working capital for marketing and investigating future overseas expansion.’
DCC, which has been exporting since 2004, has provided pool finishes for projects including the Velassaru resort in the Maldives, the Sofitel in Fiji and several luxury resorts in Thailand and Turkey.
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