Travelex and EFIC (Export Finance and Insurance Corporation) have partnered to provide an extension to the limit of the EFIC foreign exchange facility, allowing exporters to have higher foreign exchange trading limits.
Australian exporters who are Travelex customers can now enjoy higher foreign exchange limits without the need of extra security thanks to a partnership between the company and the Australian Government’s export credit agency EFIC. The two entities have agreed to double the overall limit of the EFIC foreign exchange facility guarantee.
“We are working with EFIC to double the existing hedging facilities that can be accessed by SMEs without the need for any upfront collateral,” said Simon Glendenning, General Manager, Mid Market at Travelex Global Business Payments.
“With this, we are giving SME exporters greater flexibility with their hedging arrangements, providing certainty over the value of their invoices and their profitability over the long term,” he added.
The foreign exchange facility guarantee protects exporters profits from exchange rate fluctuations, which are always a risk when dealing in international markets, by allowing them to hedge currency exposure. With EFIC’s foreign exchange facility guarantee, Travelex increases the trading limit allowing exporters to better protect their profits.
According to Andrea Govaert, EFIC’s Executive Director SME and Mid-Market, “EFIC works with SMEs that have all the ingredients for export success – innovation, drive and professionalism – but are often restricted by the amount of collateral they can offer to underpin the growth of their business”.
“Our work with Travelex is another way we can work with the commercial market to support SMEs in their export growth,” added Andrea Govaert.
Photo by Martin Cathrae