EFIC helped MultiTrode with a US bonding line
Brisbane-based MultiTrode Pty Ltd is a specialist in pump station technology for water and wastewater utilities around the world, with offices in the United States and the United Kingdom.
In 2008 the company won a contract to supply and install its innovative monitoring equipment at key waste facilities for a city municipality in the north-eastern United States.
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, underwrote a US$400,000 performance bond to help MultiTrode secure the US contract.
The bond was issued under an ongoing arrangement between EFIC and Liberty Mutual Insurance Company, one of the largest surety bond providers in the United States.
“We turned to EFIC when we found that the commercial market required full cash cover for a performance bond, which would have tied up significant amounts of our working capital,” said MultiTrode’s chief executive officer, Wayne Patterson. “EFIC’s ability to offer the performance bond by Liberty Mutual, with minimal security from us, helped free up our working capital for growing the export business.”
In the United States, many companies expect contractors to provide performance bonds to guarantee 100 per cent of the value of the work they are contracted to provide, particularly in situations that are complex or technically difficult.
The relationship between EFIC and Liberty Mutual makes it easy for EFIC to offer eligible SME exporters ready access to performance bonds in the US market.
MultiTrode Pty Ltd designs, manufactures and distributes pump station management systems, remote terminal units, liquid level sensors, Supervisory Control and Data Acquisition (SCADA) software and web-based monitoring and control systems.
The company has delivered technically advanced products and systems to water and wastewater organisations since 1985.
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