Senator for Western Australia, Senator David Johnston will launch Export Finance and Insurance Corporation's new financial product, EFIC Headway, for Western Australian exporters as part of the CCIWA's International Trade Day tomorrow.
Export Finance and Insurance Corporation's new financial product is launch its new EFIC Headway financial product in Western Australia tomorrow, claiming it can boost access to working capital for small to medium sized exporters by up to 20 per cent.
"ABS figures tell us that in 2005-06, exports from Western Australian exceeded the total amount of exports from NSW and Victoria combined", said Senator David Johnston. "Given we account for only 10% of the nation's population this is a great acheivement that provides real economic benefit to our state."
Mr Johnston will launch the new Export Finance and Insurance Corporation financial product as part of the CCIWA's International Trade Day tomorrow. "Ensuring all businesses, large and small, are able to contribute to and gain from this export activity is paramount and we welcome the introduction of EFIC Headway, which will open more doors for small and medium exporters", said Senator Johnston.
Angus Armour, Managing Director at EFIC said, "EFIC recognises that the working capital needs of profitable, fast growing SME exporters can often outstrip the value of assets that can be used to secure a loan. Our research shows that around 43% of SME exporters would borrow more if the finance was available."
A recent survey by JPMorgan and East & Partners supports this view. The survey showed that almost 40% of SMEs had a loan declined over the last two years, many due to 'inadequate security'.
The knock on effect of declined loans is that almost a quarter of SMEs shelve growth plans.
EFIC Headway can assist SME exporters with working capital shortages. EFIC Headway is a guarantee from EFIC that enables banks to lend additional funds to eligible SMEs without additional security and with minimal documentation.
With EFIC Headway, qualifying SME exporters who have reached their financier's maximum capacity can borrow up to 20% more, provided this additional amount does not exceed their annual export turnover. er. The product supports general export funding rather than specific export transactions.
International Trade Day is being run by CCIWA with the support of Austrade and the Department of Industry and Resources of Western Australia. EFIC, along with many other industry service providers, will provide Western Australian importers and exporters with information and advice regarding importing, exporting and other trade-related activities.
EFIC is Australia's export credit agency and supports Australian businesses internationally by providing finance, finance guarantees, insurance and bonding facilities. A self-funding, statutory corporation, EFIC's products and services are focused in the market gap, where because of country or industry risk there is insufficient commercial market capacity