GP Graders is a Victorian-based manufacturer of fruit-grading and packing machinery, which has developed a reputation in the cherry industry for its world-leading equipment.
GP Graders came to us to help structure a competitive finance package while negotiating to sell equipment to a Turkish buyer.
Under the deal, GP Graders would receive payments for the equipment via a documentary credit issued by a Turkish bank, for approximately €360,000.
We provided a documentary credit guarantee to Westpac, GP Graders’ bank, to guarantee the payments due from the Turkish bank under the documentary credit.
Under the documentary credit, the buyer will repay the Turkish bank for the equipment over a five-year period, while GP Graders will receive payment when it presents specific documents to Westpac verifying it has provided the equipment.
According to GP Graders’ director Stuart Payne, our involvement in the Turkish deal made the buyer’s five-year payment term possible, which was a ‘deal winner’ for the Australian exporter.
We have worked with Westpac to support other transactions for GP Graders by providing documentary credit guarantees for documentary credits issued by Turkish banks.
“In 2001, only five per cent of our business was export,” said Mr Payne. “Now it’s 75 per cent to countries such as Turkey, Greece, Chile and Italy.”