Winning an international contract is an exciting moment for any growing business, whether it’s the first step or the latest leap in an already promising exporting journey.
For many founders, reality sets in when cash flow hurdles arise. The period between signing an international deal and getting paid can stretch for weeks or months. Working capital can feel increasingly pressured as a company pushes to fulfil the demands of a new market.
It’s often at this point that Export Finance Australia (EFA) helps businesses fill cash flow gaps that are critical for expansion.
As a government-backed finance specialist with almost 70 years of experience, EFA delivers tailored finance solutions for businesses pursuing international growth. The export credit agency helps businesses move faster and earlier, take on larger contracts and protect the equity they’ve worked hard to build.
“When a business reaches the point of commercialisation and starts generating purchase orders or sales, it’s a great time to speak with EFA,” said Christopher Gianotti, EFA’s national director of product and SME lending.
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“This might be a business with steady domestic sales looking to enter overseas markets, or an exporter ready to grow.”
Meet three high-growth Australian companies that partnered with EFA to make big expansion moves.
IND Technology: Scaling a world-first invention without selling equity
The IND Technology team. Image: Supplied.
In 2013, Alan Wong started IND Technology from a storage shed in Victoria. He invented the EFD®, an early fault detection system that monitors large electricity grids, identifying defects before they cause outages or worse electrical faults that lead to fires.
The company went on to win large North American contracts and needed help to fund gaps in their payment cycle. Unable to secure finance from traditional banks, IND Technology contacted EFA.
EFA provided a loan that helped IND Technology to continue manufacturing and fulfilling orders.
EFD® is now deployed by major utility companies across Australia, the US and Canada with offices in New York and Kuala Lumpur.
“Being able to access finance from Export Finance Australia has meant the business did not need to find other sources of finance, such as selling part of the business to a private equity or venture capital firm,” said Alan Wong, founder and CEO.
“It’s allowed us to keep our business Australian. We didn’t have to let go of control of what we do. The finance has really allowed us that freedom.”
MyVenue: From a Kansas City stadium to 320,000 fans in one weekend
MyVenue CTO David Ialeggio. Image: Supplied.
Adelaide-based MyVenue builds cloud-based point-of-sale software purpose-built for stadiums, arenas and large entertainment venues. From the moment the business was launched, the team knew their product was perfect for export.
Their North American breakthrough came in March 2021, when they were selected as the POS provider for a minor league Kansas City baseball stadium. Within a year, two NFL stadiums had signed up.
Suddenly, the pace of growth became steep.
Scaling a SaaS business at speed requires people, infrastructure and liquidity. MyVenue had previously relied on raising finance through seed funding, equity rounds and government grants. This time, the business decided to use a different financial instrument for the next growth phase.
EFA provided MyVenue with a loan to scale its operations and teams.
“The loan enabled us to strengthen our capabilities and meet resourcing needs so we could capitalise on new opportunities,” said MyVenue’s chief financial officer Rebekah Pipinias.
Eco Structures: Building large glamping projects with healthy cash flow
Eco Structures founder Karl Plunkett and sales and business development director Tom Butterfield. Image: Supplied.
Eco Structures in Western Australia designs and manufactures eco-friendly glamping structures, built to withstand extreme conditions and deployed across Australia and in some of the world’s most remote locations.
As export orders and project scale increased, Eco Structures found it challenging to finance large international contracts and maintain a healthy cash flow for its operations. Export Finance Australia was recommended to the business as a source of finance.
Since 2019, EFA has provided Eco Structures with Small Business Export Loans, Export Contract Loans and an Export Line of Credit. Thanks to the loans, Eco Structures has built and delivered over 60 tents across Thailand, Laos and the United States.
“The loans relieved the pressure on our cash flow when we were delivering larger projects. We could make payments to our overseas suppliers on time, which ultimately ensures our projects are delivered on time and to schedule,” explained Lesley Guntrip, Eco Structures’ chief financial officer.
Eco Structures is now expanding into Europe and continuing to work with EFA.
Finance to accelerate growth
The three businesses above had validated their products in the market and had contracts in place which made them ideal clients for EFA’s solutions.
“It’s important the business has undergone a prove-up phase with its product or technology and is generating sales,” said Gianotti.
“We’re not a seed capital or grant provider. Therefore, the businesses that have validated their offer and are trading have the best opportunity to secure funding.”
“It could be a small or large business engaging with us. Overall, the scope and maturity of Australia’s advanced manufacturing and technology sector is diverse, and the industries we support reflect this broad and evolving landscape.”
Get your exporting journey on track at exportfinance.gov.au.
