Not your run-of-the-mill financier 

Before we go there, it’s important to highlight that Export Finance Australia is different from traditional commercial lenders in two key respects. 

First, as a corporate Commonwealth entity within the Foreign Affairs and Trade portfolio, Export Finance Australia plays a unique role in providing finance to support export trade and overseas infrastructure development when commercial banks cannot. Export Finance Australia has a broad, flexible mandate that enables it to support a range of infrastructure that delivers Australian benefits, including supporting the regional transition to cleaner energy sources. 

In other respects, Export Finance Australia is similar to other banks in that it charges fees and commercial interest rates, requires securities and other information to provide confidence finance can be repaid.

The second way Export Finance Australia is unlike your average bank is its responsibility for the Australian Government’s National Interest Account (NIA). The NIA is separate from its ‘Commercial Account,’ which Export Finance Australia runs on a commercial basis.

Under the NIA, the Minister for Trade can direct Export Finance Australia to support transactions that are in the national interest. The Commonwealth receives all income on NIA transactions. It also takes responsibility for all risks and losses. The NIA currently has several financing facilities:
- the Critical Minerals Facility
- theDefence Export Facility·       theSoutheast Asia Investment Financing Facility theAustralian Infrastructure Financing Facility for the Pacific.As part of theAustralian Government’s Future Made in Australia agenda, Export FinanceAustralia can finance major domestic projects without an export link that arealigned with the National Interest Framework, subject to Governmentconsideration and approval.

Export FinanceAustralia’s finance solutions 1.      LoansExport FinanceAustralia offers a range of loan products. These can largely be categorisedinto two groups, a Small Business Export Loan for small businesses needingto borrow $20,000 to $350K, and more tailored loan solutions for over$350,000, this includes terms loans and lines of credit.  Small Business ExportLoans can be used to finance:·       contractsand purchase orders with international buyers and Australian exporters·       exportmarket development costs to promote goods and services ·       equipmentfinance to purchase plant or equipment to support exports·       tourismservices for international visitors·       onlinebusinesses looking to grow an international client base ·       generalworking capital for other export-related activities.   To be eligiblefor a Small Business Loan, you need to be an Australian registered company (i.e.have an Australian Company Number), have been trading for at least two years,have a turnover of between $250K and $10 million, and the loan needs to be for export-relatedpurposes. You also need to generate 20% of your revenue from export sales –though chat to Export Finance Australia if you don’t meet this criterion, asyou may still be eligible for support with export-related contracts and exportmarket development costs. Helpfully, you don’tneed to secure the loan with property – just a director(s) guarantee. There’salso no penalty for early repayment. For more informationon Export Finance Australia’s  SmallBusiness Export Loan, click HERE [hyperlinkhttps://www.exportfinance.gov.au/how-we-can-help/our-solutions/small-business-export-loan/].

Tailored loans are for those requiring more than $350,000either as a stand-alone loan or as complementary finance to a bank loan.  These solutions can beused for a range of export-related needs such as to support an internationalexpansion, or export-related working capital or capital expenditure. Theseloans can support businesses that export or businesses that are part of anexport supply chain. They also support businesses wanting to export to emergingmarkets.  To be eligible,your revenue in the last financial year needs to be over $250,000, you need tobe an Australian registered company with an Australian Company Number, and yourbusiness needs to have been trading for at least 2 years. There are othereligibility criteria, so it’s super important to chat with Export FinanceAustralia to get the details.  You can find out moreabout Export Finance Australia’s loans, including how to contact the rightpeople to talk to, HERE [ hyperlinkhttps://www.exportfinance.gov.au/how-we-can-help/our-solutions/loans/]. 1.      Bonds Export FinanceAustralia can also help with bonds. What’s a bond? Good question because ‘bonds’can refer to different kinds of financial products. In the case of ExportFinance Australia, the kinds of bonds it provides are related to aninternational sale and/or contract. These bonds are kind of like a financialsafety net. They cover some or all of the costs of a traded good or service orcontract if not delivered as promised. Bonds support international trade byreducing customer risk – which makes customers more willing to trade! The kinds of bonds ExportFinance Australia provides are:·       Advancepayment bonds·       Performancebonds·       Warrantybonds and·       US surety bonds The eligibilitycriteria to secure a bond is similar to the criteria for a loan with ExportFinance Australia.  Export FinanceAustralia provides a useful explanation of the different kinds of bonds it offersand how they work for those who haven’t used them before, HERE [https://www.exportfinance.gov.au/resources/articles/what-are-bonds-and-how-do-they-work/].And for more information on ‘surety bonds’, and US surety bonds in particular, clickHERE [hyperlinkhttps://www.exportfinance.gov.au/resources/articles/surety-bonds-what-australian-exporters-need-to-know/]. For full details on ExportFinance Australia’s bonds, including how to apply and who to talk to for moreinformation, click HERE [hyperlink https://www.exportfinance.gov.au/how-we-can-help/our-solutions/bonds/].

1.      Guarantees Guarantees are anotherway Export Finance Australia helps Australian businesses secure financing fortheir exporting and/or international expansion. If a business can’t meet thesecurity levels required by a commercial bank to secure financing, EFA can stepin with a ‘guarantee’. It’s a great example of how Export Finance can fill amarket gap and work with commercial lenders to enable international exports andbusiness growth. Export FinanceAustralia’s guarantees start at $350,000. Eligibility for a guarantee issimilar to the eligibility criteria for its loans. Export Finance Australia worksclosely with the businesses and their banks, so talking to Export FinanceAustralia is key.  You can find out moreabout Export Finance Australia’s guarantees HERE [https://www.exportfinance.gov.au/how-we-can-help/our-solutions/guarantees/]. 2.      Projectand structured finance In addition to ExportFinance Australia’s loans, bonds and guarantees, it also offers financingpackages that cater to specific projects and customer needs. Considering ExportFinance Australia’s focus on filling the market gap and working with commercialbanks and Commonwealth Specialist Investment Vehicles (SIVs), the financingoptions Export Finance Australia offers are useful for businesses operating inor transacting with riskier markets.  Export FinanceAustralia’s project and structured finance solutions also include finance forprojects that purchase Australian goods or services, financing for foreigndirect investment that benefits Australia, and political risk and exportpayment insurance. As each financingsolution is tailored to the specific needs of projects and customers – talkingto Export Finance Australia team is critical. Information on the Export FinanceAustralia’s project and structure finance team is available HERE [https://www.exportfinance.gov.au/how-we-can-help/our-solutions/project-and-structured-finance/].They look like a friendly bunch, so if you’re looking for more information,giving them a call is a great place to start.  Conclusion The role of exportcredit agencies around the world is expanding as governments play a morehands-on role in achieving national security and emissions reduction goals.Australia’s own Export Finance Australia is stepping up to help both businessesand the Australian Government meet the challenges and manage the risks ofglobal markets.