Getting started in export

Getting the right finance is fundamental to your exporting success. In writing your export plan you would have determined the different costs involved when starting as an exporter.

For example, an exporter will generally need to make payments for purchases of raw materials, wages and other inputs to manufacture goods prior to receiving payment from the buyer. This means that your cash flow will be greatly affected and access to additional capital might be necessary.

Preshipment and Postshipment

Exporters have two distinct finance periods that are differentiated by the shipment. The first period is the finance required to prepare the goods for shipment, known as Preshipment. The second period is known as Postshipment and covers the period following shipment of the goods, including any terms extended to the buyer.

In seeking to balance out the mismatch in cash flows, exporters will use a mix of two broad approaches. The first of these is to seek finance through negotiation of trading terms with suppliers and buyers that will closely match the timing of payments against expected receipts. The second is to seek financing from financial institutions.

Whichever way you choose to manage your cash flow, financial planning is very important.

Export Finance Navigator

Export Finance Navigator is an online tool to help Australian small and medium-sized enterprises (SMEs) which are exporting or investing overseas to understand the export finance options that are available to them.

Export Finance Navigator helps cut through the confusion about how finance fits in the export journey. The tool divides the export journey into six key stages: preparing for export, finding markets, winning contracts, financing production, getting paid and expanding overseas.

At each stage, Export Finance Navigator identifies the export finance challenges a business may face and provides information about solutions to those challenges. As well as outlining the financial tools available from commercial institutions such as banks and insurers, Export Finance Navigator summarises the grants and tax concessions provided by federal, state and territory governments to assist current and potential exporters. The website then directs exporters to the websites of the commercial institutions and government organisations for more information.

Navigator is an independent source of information and is sponsored by Export Finance and Insurance Corporation, the Australian Government’s export credit agency.

Export Finance and Insurance Corporation

The Export Finance and Insurance Corporation (EFIC) provides finance and insurance solutions to help Australian exporters overcome the financial barriers they face when growing their business overseas.

As the Australian Government’s export credit agency, EFIC helps successful businesses to win, finance and protect export trade or overseas investments where their bank is unable to provide all the support they need. EFIC works directly with exporters or with their banks to provide loans, guarantees, bonds and insurance products which can be tailored to meet the needs of both large and small exporters.

EFIC is uniquely placed to do this: EFIC uses over 50 years of export finance and industry expertise, contacts at financial institutions around the globe, the strength of its AAA credit rating and an entrepreneurial business approach to make export deals happen.

EFIC practises responsible lending and uphold social and environmental best practice in the transactions they support.

If you’re an Australian business and have a viable opportunity to build Australia’s export markets, but financial obstacles are preventing you from moving forward, contact EFIC on 1800 093 724 or visit www.efic.gov.au.