Under the arrangement, the EFIC can provide a guarantee to NAB, enabling the bank to lend to its SME customers the additional working capital they need to finance their international business growth. The move will assist SME exporters overcome the challenge of working capital shortages and will also enable NAB to assist its business customers to finance growth for export or export-related sales.
“International expansion is an important part of many SME's growth aspirations, which is why we're focussed on developing solutions to support our customer’s working capital and funding needs,” says David Gall NAB's Executive General Manager, Working Capital Services.
“Some of the exporters EFIC has supported have really innovative products and incredible business acumen, but their business growth has put pressure on their finances and the value of their assets is insufficient to enable the lender to provide additional finance,” adds EFIC’s Executive Director, SME and Mid-Market, Stuart Neilson.
“EFIC guarantees issued under this agreement with NAB 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 (generally for a minimum of $500,000) which can support a single export contract or many export contracts with different buyers. More information is available on the EFIC website.
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