Documentary Credit Guarantee Under EFIC's Documentary Credit Guarantee (DCG) facility, a bank confirms an Irrevocable Documentary Credit (IDC) and provides without-recourse trade facilities to an Australian exporter. EFIC guarantees payment to the confirming bank of the principal and interest payment obligations of the bank issuing the IDC. How can a Documentary Credit Guarantee help you? EFIC's Documentary Credit Guarantee facility may be of assistance if you require a documentary credit involving: - the export of capital goods or services with a sufficient level of Australian content;
- between two and five year repayment periods; and
- a contract value between $1 million - $5 million.
Features - IDC may be denominated in any major currency.
- EFIC may guarantee up to a maximum of 85% of the Eligible Contract Value*.
Documentary Credit Finance
There are circumstances where it is more appropriate for EFIC to offer assistance to Australian exporters by way of IDC finance arrangements. Under this facility, EFIC is made beneficiary of IDCs issued in respect of an export contract. Once the exporter's bank accepts the export documentation, EFIC will pay the exporter the amount funded through the IDC whilst taking the risk of deferred payment under the IDC over time. This facility is particularly effective in the case of transactions of A$1 million or more with a minimal number of shipments.
Eligibility and Application For all applications and enquiries contact us at finance@efic.gov.au or call us on 1800 887 588 between 8.30am - 5.30pm, Monday to Friday (AEST), or if outside Australia on +61 2 9201 2111. | | * Eligible Contract Value is EFIC's estimate of the levels of Australian and foreign-sourced content in the contract (80% in relation to ships).
|
