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The time between production, shipping, distribution and receipt of payment is generally longer for international transactions. Therefore, identifying the key items to be financed and the main sources of export financing is essential for your business to promote its export growth and avoid cash flow issues.

Types of Export Financing

Pre-shipment finance
The amount of funds required for the purchase of raw materials, components and parts to fulfil the sales order.

Post-shipment finance
The amount of funds required to finance operations during the period between the dispatch of goods and receipt of payment.

Working capital
The amount of finance required for day-to-day operations such as labour costs, equipment maintenance and overheads.

Sources of Export Financing

Commercial banks
Financing provided by commercial banks and financial institutions can be a major source of funding for managing and developing your export business. However, the availability of  finances will largely depend on the nature and circumstances of your company. Funding required to finance a firms' exports can generally be obtained from commercial banks (such as ANZ, Commonwealth, HSBC, NAB, Westpac), financial institutions and Export Finance and Insurance Corporation.

Venture Capital (VC)
Venture Capital (VC) typically involves an exchange, that is, financing for an ownership of the your company's export venture and a claim on future earnings. VC providers usually take an active involvement in management or board-level in the firm.

Supplier/Buyer Credit
Your supplier may be prepared to extend terms to you to offset the time span between purchasing raw materials and receiving payment from your overseas buyer.  Additionally you can request a deposit or part payment up front from buyers to assist your cash flow management.

Financial assistance available from the federal government includes:

• Austrade  - helps businesses of all sizes and across all sectors to suceed in international trade and investment.
• Export Concessions: Duty Drawback  - this is designed to assist exporters to obtain a refund of Customs Duty paid on imported goods that are subsequently exported.
• Tradex  - this is an alternative to Duty Drawbacks. Tradex provides a cashflow benefit where the importer of goods intended for export does not have to pay the relevant Customs Duty or GST at the time of import.
• Export Market Development Grant  - you may be eligible to be reimbursed for some expenses incurred in promoting your export.
• Women in Export  - this program seeks to support and advance the involvement of women achieving international business success.
• Export Finance and Insurance Corporation (EFIC)  - helps you obtain finance through EFIC Headway . If you do not have sufficient security to obtain additional bank finance, EFIC can provide a guarantee to your bank, which then provides the necessary funds for your export. For more information about EFIC Headway and other EFIC services, check the EFIC  website or call 1800 887 588.
• Export Finance Navigator  - an online tool containing information on exporting and what financial assistance is available for exporters.

State and territory governments also have financial assistance schemes for exporters.