Working capital guarantees 
 

 Working capital guarantees 

If you’re a fast-growing small to medium sized exporter, ensuring that you have enough working capital to keep up with the demands of your business can be an ongoing challenge. You may find that you're short of funds to deliver on a large new export contract or you're winning contracts that expand your export business faster than expected.

However, you may not have the assets – often in the form of real estate – that your bank requires you to provide as security for further working capital finance.

If your bank can’t assist, EFIC may be able to help you obtain working capital finance with a working capital guarantee: a guarantee to your bank which enables it to lend you additional funds. Working capital guarantees from EFIC can help to finance particular export contracts or many export contracts with different buyers. EFIC’s guarantee can be tailored to the individual requirements of export businesses. Whatever your working capital needs, our flexible guarantee may help you obtain the extra funds to help your export business grow.

What are the benefits?

  • Give you access to additional working capital to keep growing your export business.
  • Provide support for pre- or post-shipment finance for one or many export contracts.
  • Flexibility: EFIC’s guarantees can be tailored to the individual requirements of export businesses.

Export working capital guarantee

  • Supports working capital for one or more specific export contracts.
  • Can support a single export contract or multiple export contracts with different buyers.
  • Available for pre- or post-shipment working capital finance, or both.
  • Minimum guarantee of $500,000.
  • A guarantee for a single export contract continues until the overseas buyer has made their final payment.
  • A guarantee covering multiple contracts is generally for a term of up to 12 months.

Need a working capital solution that’s designed for your business?

Your export business may have particular working capital needs. If EFIC’s standard working capital guarantees don’t meet your requirements, we may be able to work with your bank to design a solution to suit you. For more information, contact us.

 

Disclaimer: This information, including terms and conditions, is supplied as a general 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.

This information does not comprise advice or a recommendation and EFIC makes no warranty or representation 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 information on this website.