EFIC helps cycling company to lead the pack


Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, is supporting Melbourne-based cycling accessories company Knog Pty Ltd with an export working capital guarantee to help the company meet increasing international demand for its products.

EFIC has provided the US$600,000 export working capital guarantee to Knog’s bank, Westpac, enabling the bank to lend this amount to the company to help finance orders for its products from distributors in North America, Asia and Europe.

Knog designs and markets urban cycling accessories, including lights, locks, cycle computers, bags, gloves, clothing, leather goods, and bike tools. It exports to over 40 countries, mostly in the northern hemisphere, through a network of distributors.

Substantial growth in demand for Knog’s products over the last few years has meant that the company has an increased need for cash flow.

The size of distributors’ orders has increased significantly and distributors are requesting payment terms of up to 60 days, rather than full payment upon shipping. And suppliers are asking for more favorable credit terms as Knog’s orders become a larger part of their business.

“The mismatch between when we have to pay our suppliers and when we get paid by our distributors is a challenge for us”, said Knog’s Chief Executive Officer Hugo Davidson.

“With the help of EFIC’s export working capital guarantee and Westpac, our cash flow will be more even and we’ll be able to pay suppliers earlier. This should also help us negotiate favourable supply prices and offer better payment terms to our main distributors.

“Fast-growing SME exporters often find that cash flow shortages threaten to stifle their growth,” said EFIC’s Executive Director, SME Andrea Govaert.

“EFIC’s export working capital guarantees can help exporters by enabling their bank to lend them more working capital, he said.

“Knog is a great Australian brand and we’re pleased to be able to contribute to its increasing international success.”



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