Small businesses will find it easier and quicker to access the finance they need to support their products and services exports, with a new Small Business Export Loan launched by EFIC (Export Finance and Insurance Corporation).
The Small Business Export Loan is said to improve convenience, increase approval speed and provide greater flexibility for Australian small businesses seeking finance to support export contracts. The loan will enable small and medium sized businesses with an annual revenue between $250,000 and $5 million to access up to $250,000 to support an export contract. The loan will be available to small exporters when their main bank is unable to help.
The Small Business Export Loan has been developed to meet the needs of small exporters, with a focus on convenience and speed throughout the application and approval process. Small businesses can apply online via EFIC’s online portal, EFICDirect, in as little as 30 minutes and will receive an indicative offer immediately. Businesses can then receive a formal approval within seven business days, after which funds can be available to draw on within as little as two business days. In assessing loan applications, EFIC will focus on the small exporter’s ability to service the loan, rather than the level of security available.
Being unable to provide securable assets is a barrier many small businesses face when seeking to access finance for export.
“This new loan facility is the first of its kind designed specifically for small exporters,” said Andrew Hunter, managing director & CEO, EFIC. “Moving the application online through our portal, EFICDirect, has allowed us to significantly reduce the cost and time needed for small businesses to apply for and access export finance. The whole process could take less than two weeks.”