Getting access to finance to help you grow your export business is one of the main barriers for Australian small and medium business (SME) exporters. Exporting your wine is a tricky business, but throw in managing domestic and international cashflow, and it can become even more complicated.
In recent research conducted by Efic, one in five of the 1200 SMEs interviewed expected access to export finance to become more difficult over the next 12 months – while 56 percent are expecting their overseas sales revenue to increase over the same period.
With Australia’s wine industry experiencing a boom due to increasing demand from the Chinese market, opportunities for small wine companies to grow their exports have rarely seen better days. But pressure on cashflow, long customer repayment terms and securing export finance continue to be some of the key barriers small wine businesses can face when exporting.
There are solutions. Efic’s Small Business Export Loan is designed to help SMEs overcome these export challenges by providing finance for an export contract when your bank can’t help.
It’s already making an impact and helping Australian wine businesses grow their exports.
McLaren Vale-based Zonte’s Footstep received an increased order from their customer, The Liquor Control Board Ontario (LCBO), making the wine company the second largest imported brand in the LCBO ‘vintage’ segment.
Zonte’s bank wasn’t able to provide the financial support the company needed to deliver on the contract. Efic stepped in to help.
“The Small Business Export Loan (SBEL) has been fantastic for small business exporters like Zonte’s,” Zonte’s Footstep managing director Anna Fisher said.
“The ability to do a simple online application that provides the added flexibility of choosing our own terms was brilliant. It was important for us to be able to set the terms around what we felt we were able to deliver, and Efic provided us with the flexibility to do that.”
Efic’s loan gives growing export businesses the opportunity to tailor loan repayment terms for unsecured loans, which can be as little as $50,000 to $250,000. The online application is quick and simple, with funds available in as little as nine business days.
“We received a $250,000 loan with a 12-month repayment term. It really helped us manage our working capital. If we hadn't gotten the funding from Efic, it would have been extremely difficult to fulfil our orders. Efic has given us the confidence to keep moving forward,” Anne said.
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