19 April 2007

The Northern Territory’s small to medium-sized enterprises (SMEs) will be better placed to seize export opportunities because of access to additional working capital using a new financial product to be launched in Darwin today by the Export Finance and Insurance Corporation (EFIC).

EFIC Headway – developed in line with EFIC’s mandate to help Australian businesses grow internationally – assists SMEs to boost their access to working capital by up to 20 per cent.

“Some 86 per cent of Australian exporters are SMEs but our research shows that many frequently miss out on export opportunities due to working capital shortages,” said Mr Sunil Aranha, head of SME business development at EFIC.  “Forty-three per cent would borrow more if finance was available.”

The product provides an EFIC guarantee that enables banks to lend additional funds to eligible exporters with minimal documentation and without additional security.

“We recognised that export opportunities grow faster than the value of the assets that many of these exporters can use as security.  EFIC Headway will open more doors for SMEs looking to broaden their markets and expand their businesses.”

“EFIC Headway will help Northern Territory exporters reach their full growth potential,” said Mr Mark Norman, chair of the International Business Council at the Northern Territory Chamber of Commerce.  “It’s a breakthrough that will help local SME exporters build markets internationally.”

Distributed by eight banks – Westpac, HSBC, ANZ, NAB, Commonwealth Bank, BankWest, Bank of Queensland and Bendigo Bank – EFIC Headway is available to a wide range of SME exporters at a competitive price.  Eligible companies should have annual sales of less than $50 million, at least two years’ export experience and be in private ownership.

Since its national launch in July 2006, EFIC Headway has helped exporters of different sizes across Australia and in a broad range of industries, including manufacturing, food and beverage, construction and engineering, textiles, information technology and agribusiness.

“Banks may lend additional funds to eligible exporters using EFIC Headway because of EFIC’s triple-A rated guarantee,” Mr Aranha said.  “The additional funds will ensure Northern Territory SMEs are able to build sales, enter new markets and not miss out on opportunities due to working capital constraints.”

The Northern Territory sold $3.4 billion worth of exports in 2005 06, an impressive 13.6 per cent increase on the previous financial year.

About EFIC
EFIC – the Australian Government’s export credit agency – has been supporting Australian businesses internationally for 50 years by providing finance, finance guarantees, insurance and bonding facilities.  EFIC is a self-funding, statutory corporation and operates beyond the limits of the commercial market, providing support when financial, country or industry risks exceed the capacity available in financial markets.

Contact

Nicholas Turner    Marketing Communications Manager    Export Finance and Insurance Corporation       Phone: (02) 9201 2282 Email: nturner@efic.gov.au

Ashley Rambukwella Financial & Corporate Relations Pty Ltd Phone: (02) 8264 1004 Mobile: 0407 231 282 Email: arambukwella@fcr.com.au