A new Small Business Export Loan announced by Trade Minister Steve Ciobo has been launched to make it easier for small and medium enterprises looking to export to access finance.
Provided by Australia’s export finance agency, Efic, Mr Ciobo said the loan will improve convenience, increase approval speed and provide greater flexibility for Australian businesses seeking finance to export.
Mr Ciobo said the Small Business Export Loan would help small and medium enterprises take full advantage of the free trade agreements with the three north Asian powerhouse economies of China, Japan and South Korea.
“This new loan facility will make it easier for small and medium enterprises to export and expand their business, driving jobs and growth,” he said.
The loan product enables businesses with 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 bank is unable to help.
Small and medium enterprises can apply via Efic’s online portal, EficDirect, in as little as 30 minutes and will receive an indicative offer immediately. A formal approval can be received 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 ability to service the loan, rather than the level of security available. This will overcome the barrier of being unable to provide tangible security that many small and medium enterprises face when seeking to access finance for export.
The new loan facility is the first of its kind designed specifically for small exporters.
Source: Minister for Trade. More information is available on the Efic website here