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In late 2012, the Australian government took steps to improve SME access to export finance.
In an official media release of 22 October 2012, the Export Finance and Insurance Corporation (EFIC), the Australian Government's export credit agency, informed about the signature of a Master Working Capital Guarantee Facility with the National Australia Bank (NAB, a leading local bank with market share of 24.8%).
Under the arrangement, EFIC will provide a guarantee for a minimum of $500,000 to NAB, enabling the bank to lend working capital loans to its SME customers to finance export or export-related sales. Thereby, EFIC helps Australian SME exporters to overcome the common financial barrier they face, when their assets are insufficient to enable the lender to provide additional financing.
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