If you’re a fast-growing small-to-medium sized exporter ensuring you have enough working capital to keep up with your business growth can be an ongoing challenge.
You may find that you're short of funds to deliver on a large new export contract or you may be winning contracts that means your export business grows faster than expected.
This was the case for Melbourne-based specialist manufacturer of CNC tool grinders, ANCA.
ANCA designs and manufactures its own software and major components enabling it to provide flexible solutions to customers.
Key industries the company supplies to include tool manufacturers, medical, automotive, electronics, aerospace and woodwork.
ANCA began exporting in 1986 and has won key export awards including the Australian Exporter of the Year and has a range of high-profile customers including Rolls Royce, Johnson & Johnson, Boeing and Sutton Tools.
Upon recently winning a new supply contract with a Chinese global organisation headquartered in Hong Kong, ANCA needed working capital assistance in order to finance fulfillment of the contract.
Due to the high value of the export contract, ANCA sought the assistance of EFIC to secure finance in order to complete the deal.
As the Australian Government’s export credit agency, EFIC helps Australian-based businesses to win and finance export, offshore investment and onshore export-related opportunities when their bank is unable to provide all the support they need.
We work directly with businesses and their banks to provide loans, guarantees, bonds and insurance products which can be tailored to meet the needs of both large and small enterprises.
EFIC provided ANCA’s bank, HSBC, with a million Export Working Capital Guarantee (EWCG) to help fund the supply and purchase agreement.
Working capital guarantees from EFIC can help to finance particular export contracts or many export contracts with different buyers.
The guarantee can be tailored to the individual requirements of an export business. Whatever your working capital needs, our flexible guarantee may help you obtain the extra funds to help your export business grow.
EFIC’s support meant that ANCA was able to finance the new contract in Hong Kong and also secure additional export transactions.
"With agreements as large as this one it helps to have the assistance of an organisation like EFIC. We have been exporting for over 20 years and currently export to many regions including America, Asia and Europe, while still continuing to expand into new markets", said Pat Boland, Managing Director, ANCA.
For more information about EFIC and how eligible Australian manufacturers overcome barriers to growth and finance their exports or international expansion, please visit www.efic.gov.au.