Today the Minister for Trade and Investment Steven Ciobo has announced the Government will offer a new Small Business Export Loan for SMEs.
The loan aims to ease SME's access to finance and is provided by Australia's export finance agency, Efic.
According to Minsiter Ciobo, the loan will improve convenience, increase approval speed and provide greater flexibility for Australian businesses seeking finance to export.
It is being heralded as an opportunity for SMEs to take full advantage of the Free Trade Agreements with the "three north Asian powerhouse economies of China, Japan and South Korea", according to the Minister's release.
The loan product enables businesses with an annual revenue between $250K and $5 million to access up to $250K to support an export contract and will be available to SMEs when their bank is unable to help.
SMEs can apply via Efic's online portal, EficDirect and will receive an indicative offer in as little as 30 minutes. 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 foucus ton 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 SMEs face when seeking to access finance for export," Minister Ciobo's release stated.