While conditions in Australia’s manufacturing industry remain challenging, there are some great opportunities for companies to grow and expand overseas.
However, taking advantage of these opportunities can sometimes throw up challenges.
If you’re a fast-growing small-to-medium sized exporter, one of these challenges can be ensuring you have enough working capital to keep up with the demands of your business.
You may find that you're short of funds to deliver on a large new export contract or you're winning contracts that expand your export business faster than expected.
This was the case for Victoria-based commercial and venue seating manufacturer, Camatic.
Since the 1980s, Camatic has been manufacturing seating for stadiums, theatres and cinemas, and was the first Australian company to offer these services from design-concept right through to finished product.
Camatic has one of the most modern manufacturing facilities in the world and is one of the only facilities to maintain all phases of the seating design and manufacturing process in-house.
Having previously completed large-scale domestic projects for the Sydney Opera House and Melbourne Cricket Ground, Camatic’s growth journey led it to pursue overseas opportunities. However, the company faced some challenges with financing its export growth.
Support from EFIC
Upon recently winning a seating contract for the new San Francisco 49ers football stadium in Santa Clara, California, Camatic needed working capital to support the manufacture, delivery and installation of 68,500 seats.
Due to the large scale of the project, Camatic turned to Export Finance and Insurance Corporation (EFIC) for support. EFIC did this by providing Camatic’s bank, NAB, with an Export Working Capital Guarantee (EWCG).
As the Australian Government’s export credit agency, EFIC supports the growth of Australian companies in their international activities by providing tailored financial solutions when the private market faces constraints.
EFIC’s guarantee meant Camatic gained access to additional funds which allowed it to pursue the deal with the San Francisco 49ers.
“The EWCG enabled Camatic to take on this major contract and freed up working capital, which is important given its strong order book,” said Andrew Watson, EFIC Executive Director, SME.
Lyndsay Baczyk, Group Financial Controller, Camatic added: “The export working capital guarantee solution has been of great assistance in accommodating the working capital needs of Camatic’s operating arm.”
For more information about EFIC and how it can assist eligible Australian manufacturers with export finance, visit: www.efic.gov.au