If you’re a profitable, fast-growing small to medium sized exporter, you may find that you’ve reached your borrowing limit and need more working capital to finance the expansion of your export business. However, you may be unable to provide the additional security that your bank requires in order to increase your working capital facility.
EFIC Headway working capital guarantee is a guarantee from EFIC to your participating bank. It provides security for the bank to lend you the extra funds you need, without requiring additional security from you.
EFIC Headway is an extension to your facilities with a participating bank and supports general export funding rather than a specific export transaction or contract. This means you can take immediate advantage of new export opportunities, increase your export capacity or build infrastructure and product lines.
The banks which participate in EFIC Headway are Westpac, HSBC, ANZ, NAB, BankWest, Commonwealth Bank, Bank of Queensland, Bendigo Bank and St.George.
What are the benefits?
- Available to exporters for general working capital
- Provides access to additional finance to grow your business
- Enables you to take advantage of immediate export opportunities
- No additional security needed
- Minimal additional documentation required
- Flexible terms, normally of up to 12 months
How does EFIC Headway work?
- You apply to your participating bank for additional working capital
- If the bank determines that you are eligible for an EFIC Headway working capital guarantee, it will recommend that EFIC approves the application
- If EFIC approves the application, it provides a Headway guarantee to the bank for the additional working capital
- The bank provides the additional working capital funds to you
Terms and conditions
Terms and conditions will be negotiated during the application process. The following guidelines provide an indication of typical requirements:
Eligibility
Your participating bank will determine whether you are eligible for EFIC Headway and if so, recommend approval to EFIC. As a general rule, EFIC Headway is available to Australian exporters who:
- have a current banking relationship, including existing loan facilities, with a participating bank
- are producing goods or services for export which have substantial Australian content.
Maximum value
Up to the amount of your annual export turnover, but generally limited to 20% of your total facilities.
Term
Flexible periods of up to 12 months.
Fees & charges
Fees and charges vary depending upon a number of factors including EFIC’s risk assessment, term and the level of existing security.
Security
Subject to the normal security arrangements you have in place with your bank, no additional security is generally required.
To find out how EFIC Headway can help you finance and grow your export business, contact your Business Banking Relationship Manager at any participating bank: Westpac, HSBC, ANZ, NAB, BankWest, Commonwealth Bank, Bank of Queensland, Bendigo Bank or St.George.
Alternatively, contact EFIC.
NOTE: Information on terms and conditions is supplied as a guideline only. EFIC’s compliance with legislation and OECD guidelines, together with its credit assessment and other policies, influence the actual terms and conditions that may be applicable to any eventual transaction with EFIC.
The information provided does not comprise advice or a recommendation and EFIC makes no representation or warranty relating to it. To the maximum extent permitted by law, EFIC will not be liable for any direct or indirect loss or damage incurred by any person on the basis of this information.