Guarantee to build access to working capital
HSBC Bank Australia and Export Finance and Insurance Corporation (EFIC) have announced the signing of a new Master Working capital Guarantee Facility with an aim to assist Australian exporters in gaining access to additional working capital to finance export contracts.
Under this arrangement, EFIC can provide a guarantee to HSBC, enabling the bank to lend to its export customers the additional working capital they need to finance their international sales contracts.
“Export customers with plans to establish and grow offshore markets for their products and services need access to working capital finance,” said Andrew Skinner, Head of Trade and Supply Chain at HSBC.
“The new arrangement with EFIC will enable HSBC to further assist our customers with their export finance requirements.”
Alex Fernandez, EFIC’s Head of Alliance and Product, SME and Mid-Market explains that the arrangement with HSBC is another way EFIC can support Australian businesses growing their export trade.
“As the Australian Government’s export credit agency, we can provide financial support to exporters in a variety of ways to suit the specific business requirements,” Mr Fernandez said.
“This arrangement with HSBC can help Australian businesses to finance their export contracts and keep growing their businesses internationally.”
EFIC’s export working capital guarantee is a flexible guarantee which can support a single export contract or many export contracts with different buyers. Generally, the guarantee is for a minimum of $500,000.