none
none

EFIC joins forces with Travelex

While foreign exchange hedging is an important tool for exporters,
many smaller exporters are unable to fully hedge their contracts because
they have reached the limit of existing foreign exchange facilities and
don’t have sufficient working capital to put up additional security.

To
help, Travelex and the Australian Government’s export credit agency,
Export Finance and Insurance Corporation (EFIC), have developed a new
partnership which enables Travelex to provide eligible exporters with
higher foreign exchange trading limits without them having to provide
upfront additional security. This allows them to extend their hedging to
include more export contracts.

For example, if Travelex provides
an exporter with a $500,000 trading limit – meaning the company can
take out hedging products to a value of $500,000.

EFIC’s
guarantee means that they will now have a face value limit of $1million,
allowing the business to hedge up to $1million in FX risk at any one
time.

The service is available to exporters who meet the eligibility criteria and are approved by EFIC.

“Our
new partnership with EFIC is a natural fit for Travelex – sharing a
common aim in working with Australian exporters, helping them to engage
and develop international trade, said Travelex Regional Managing
Director, Asia-Pacific and Japan, Kerry Agiasotis.

“Our goal is to establish close working relationships with our customers, allowing them
to
focus on growing their business, rather than be distracted with
concerns about foreign exchange. This partnership is a very practical
way that we can help to achieve that goal.”

Andrea Govaert,
EFIC’s executive director for SMEs, said: “EFIC’s new foreign exchange
facility guarantee broadens the ways in which EFIC can help exporters
manage the risks of international trade and protect their export
business from loss due to events beyond their control.”

“The
guarantee is designed to assist small and medium-sized businesses, in
line with EFIC’s focus on helping SME exporters overcome financial
barriers and move into global markets,” she said.

To apply for
this new service, exporters need to be (or become) a Travelex customer
and must also meet criteria associated with this product. To be eligible
businesses must:

  • Have, or have approval for, a Travelex foreign exchange facility
    which relates to foreign exchange forward contracts (and, for eligible
    customers, option contracts) for hedging purposes only and
  • In the last 12 months, have exported goods or services to at least a
    minimum value of $50,000 or higher where the trading limit is increased
    by more than $500,000.

Travelex
Ph: 1800 730 400
www.travelexbusiness.com/au