With economic conditions now relatively favourable for exporting, more Australian companies are looking overseas to grow their businesses.
South Australian wine wholesaler The Spurs Wine Company and manufacturer Tomco Technologies are just two home-grown companies who have beaten the odds to successfully market their products globally.
The Spurs Wine Company, based in the Clare Valley, has been selling its wines overseas since its establishment four years ago.
The company distributes to a number of European countries, enjoying great success.
More recently, the wine wholesaler has taken advantage of strong demand from China, due to the country’s expanding middle class. The Spurs has established a distribution business in the Chinese city of Qingdao.
At the other end of the product scale, Adelaide-based Tomco Technologies, an engineering company that designs and manufactures radio frequency power amplifiers for scientific and commercial applications, has also been enjoying an upsurge in sales overseas.
The manufacturer supplies its products to scientific and industrial customers around the world, for use in MRI machines, weather prediction radars and security screening equipment among other things.
Tomco, which conducts all of its design, manufacturing and shipping out of its Adelaide head office, has experienced export success in a number of countries worldwide, including Germany and Russia.
Even when faced with exciting opportunities in international markets, it’s not always straight forward for Australian exporters. One of the biggest hurdles exporters face is access to working capital to finance new contracts.
For The Spurs, winning new supply contracts for a number of Scandinavian markets, including Sweden, recently, meant the need for the company to secure additional working capital.
Efic, a specialist financier which helps Australian exporters, was able to provide The Spurs’ bank, NAB, with an export working capital guarantee, so that it could provide the additional working capital the company needed to fulfil its Swedish contract.
And Tomco also recently needed additional working capital to support a new contract with Bevatech OHG, a German physics consulting firm, for the manufacture and export of two radio frequency amplifiers to be used in a multinational research institute based in Russia.
Game changer for businesses
Efic provided Tomco with an export working capital guarantee which allowed it to receive the working capital it needed to fulfil the contract for Bevatech, including buying components and paying for manufacturing and delivery.
Leela Hanson, Efic State Director for SME in SA, says it is not always easy for smaller businesses to secure finance needed to achieve success overseas.
“A lack of access to finance can hold SMEs back from winning new business, growing internationally and commencing export operations, Ms Hanson said. “Being able to draw down on much-needed finance can be a game changer for businesses with opportunities in international markets”.
“With specialist export knowledge and expertise, we are able to work with SMEs to find a tailored solution that will meet their needs for export finance, so that companies like The Spurs and Tomco, both fantastic Australian success stories, can realise their potential overseas.”
To find out how Efic may be able to assist your business, contact Leela Hanson on 0408 974 215