EFIC supported Fitch Metals Engineering with an advance payment bond
Fitch Metals Engineering (FME), a Sydney-based designer and manufacturer of colour coating lines for metal strips, won an US$8.25 million contract to supply its state-of-the-art coil coating equipment to the Brazilian company Tekno S.A.
Tekno’s advance payments under the export contract provided FME with working capital to finance the export order.
Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, provided two advance payment bonds, each worth US$825,000, to secure Tekno’s advance payments to FME.
An advance payment bond gives a buyer comfort that if a supplier doesn’t fulfil their contract obligations, an upfront payment from the buyer will be returned.
EFIC’s bonds help Australian small and medium-sized exporters meet their contract requirements without tying up all their working capital.
‘Our contract with Tekno is one of our larger export orders and involves several shipments of equipment’, said FME’s founder and owner, Mike Fitch.
‘EFIC’s bonding support helped us secure the substantial working capital we need to undertake the contract’, said Mr Fitch.
The company has over 14 years’ experience exporting its innovative coil coating technology to customers in the Americas, Europe, Asia, the Middle East and South Africa.
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