NAB strikes deal with Export Finance and Insurance Corporation to help SMEs
Companies hoping to get some assistance for exporting may be able to get capital under a new arrangement between NAB and the Export Finance and Insurance Corporation (EFIC).
The deal is likely to relieve some of the pain for exporters who've been hit by the news the Federal Government has slashed $100 million from the Export Market Development Grant over the next four years.
It also comes at a time when SMEs continue to complain over lack of access to finance.
The two organisations have signed a Master Working Capital Guarantee to help SMEs access working capital in order to assist with business growth. The flexible guarantee can support a single contract, or several with different buyers.
The guarantee is generally for a minimum of $500,000, with EFIC head of alliance and product, SME and mid-market, Alex Fernandez telling SmartCompany businesses have to do a "little bit of work" beforehand - but it's a worthy program.
"We're here to help businesses get access to finance...when they find they can't do that through their financial institution."
NAB executive general manager of working capital services David Gall said the program is "focusedÂÂ on developing solutions to support our customer's working capital and funding needs," NAB executive general manager of working capital services David Gall said in a statement.
The new project works by EFIC provide a guarantee to NAB, which will enable NAB to help its customers finance export-related growth projects.
EFIC executive director of SME and mid-market, Stuart Neilson, said in a statement exporters are under stress, with the value of their assets now insufficient to help gain access to finance.
"EFIC guarantees issued under this agreement with NAB can help Australian businesses to finance their export contracts and keep growing their businesses internationally.
Exporters have been under a significant amount of strain in the past few years. The higher Australian dollar has caused margins to erode, and expectations for both profit and employment among exporters is low.