This is advertiser content for Export Finance Australia.
This is a difficult time for all businesses, including agricultural exporters. The world around us is changing rapidly and in ways that are challenging this industry more than ever before.
One thing that hasn't changed, however, is Export Finance Australia's commitment to supporting these rural and regional exporters.
The government's export credit agency has been providing finance to Australian exporters, including agriculture business in an export-related supply chain, for more than 60 years, and now more than ever, their team is at hand to support people through these times.
About Export Finance
Export Finance Australia provides a range of flexible loans and guarantees for exporters or businesses in an export-related supply chain.
They support a wide range of industry sectors along with agriculture, including manufacturing, professional services, and shipbuilding, through to fashion, tourism, beauty and wine businesses that want to grow internationally and achieve export success.
Through their loans, bonds and guarantees, Export Finance Australia supports small and medium enterprises, corporates, and governments to realise export opportunities or to contribute to the export supply chain.
Support for Australian exporters through COVID-19
Recent forecasts suggest 73 per cent of Australia's agricultural production will be sent overseas this financial year, with China one of the country's biggest markets*. Following years of drought, COVID-19 has added further stress on farmers and exporters.
Businesses may also be faced with other unexpected challenges, from order cancellations and lost revenue, to shipment delays and payment difficulties due to COVID-19.
There are a number of different ways Export Finance Australia could help agricultural businesses, including working capital to finance against supplier invoices or international purchase orders, capital investment to purchase new equipment and expand operations, international expansion to establish or grow business operations overseas and online growth to invest in eCommerce and grow sales to international customers.
Whether your agriculture business needs finance to help achieve your exporting goals, are unable to secure finance from your bank or need financial support to get through these times ahead, Export Finance Australia may be able to assist.
- *Australian Bureau of Agricultural and Resource Economics and Sciences, Agricultural commodities: March quarter 2020
Agri Direct Australia (ADA) is a Victorian-based exporter of a range of agricultural products to Bangladesh, India, Pakistan, China and Japan.
Founded in 2011, ADA partners with Australian farmers to export high-quality wheat, chickpeas, lentils, canola and oats to a network of overseas wholesalers.
ADA established an agreement to export chickpeas and lentils to a reliable counterpart in Bangladesh, worth A$660,000 to Bangladesh. In order to deliver this large order, ADA needed additional working capital to cover upfront payments to suppliers, before receiving its own payment.
While ADA's bank was interested in providing a trade finance facility, it wasn't able to without a guarantee and so suggested ADA contact Export Finance Australia to see if they had a solution.
Export Finance Australia provided ADA with an Export Working Capital Guarantee, which allowed ADA's bank to approve the additional finance that covered the time lag before ADA was paid by its overseas buyer.
Having the funds available to cover the cost of each order allowed ADA to seek new contracts and continue growing its business.
"Export Finance Australia's support enabled us to deliver on an important contract that otherwise would have been very difficult," Agri Direct Australia sole director Saydul Ruman said.
Western Australian business Oz Varieties has a blueberry breeding program which it was able to continue to fund thanks to a loan from Export Finance Australia.
Oz Varieties founder Roger Horak began working with blueberries in 2006 to develop new varieties that would thrive in low chill environments around the world.
The business started looking at the latest machinery available that would substantially increase blueberry production output at their packing facility, enabling it to better meet the burgeoning demand for blueberries in its key markets and fund its plant breeding program.
Having found the machines, the business needed asset finance to purchase them. With their asset finance contact unable to provide the support needed, Oz Varieties contacted Export Finance Australia. Export Finance Australia was able to provide Oz Varieties with a $1.1 million loan to support the purchase of the new packing machines.
"The team at Export Finance Australia were fantastic. This type of solution needed thinking outside the box, they were able to do that and provide a loan to help us finance two new sorting and packing machines for our production facility," Roger said.
"We've now taken our production efficiency from 70-80 per cent to as high as 98-99 per cent. There have been massive improvements that these machines have made," Roger said.
"Without Export Finance Australia our business growth would have been severely impacted. Their help means we had the ability to improve our efficiencies and make the business that much more commercial. It's been fantastic. We're definitely planning to further our relationship."
If your export business is unable to access finance from your bank, Export Finance Australia may be able to help. Speak to their team to discuss how their finance solutions could support your business during these challenging times.
Get in touch at 1800 093 724.
This is advertiser content for Export Finance Australia.
The story Export Finance Australia is here to help agricultural exporters during COVID-19 first appeared on The Land.