HSBC Australia gets working capital cover
HSBC is set to offer greater working capital provisions to Australian exporters after the bank signed a master working capital guarantee facility with Australia’s export credit agency EFIC.
Under the agreement, the ECA will guarantee HSBC’s working capital loans that Australian companies need to finance their international sales contracts.
While there is a degree of flexibility with the EFIC working capital guarantee in the type of contract covered, generally, the insurance is for a minimum of A$500,000 (US$486,000).
“Export customers with plans to establish and grow offshore markets for their products and services need access to working capital finance,” says Andrew Skinner, HSBC’s head of trade and supply chain, Australia.
“The new arrangement with EFIC will enable HSBC to further assist our customers with their export finance requirements.”
The agency has teamed up with a number of banks in a similar way over the last 18 months, most notably the Australian banks ANZ, CBA and Westpac.
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