Quick answer
Export finance is funding that helps an Australian business produce, ship and wait for payment on goods or services sold overseas. It covers costs before the buyer pays and can support longer overseas payment terms. Ownright Custom Finance arranges export finance Australia-wide and can look at government-backed and private lender options.
Key points
- Funds production and shipping before an overseas buyer pays
- Can bridge long payment terms common in export markets
- Government-backed guarantees may help where bank security falls short
- Suits manufacturers, producers, agribusiness and service exporters
- Suits
- Exporters of goods and services, producers, manufacturers, supply-chain suppliers
- Security
- Receivables, goods, business assets or property, sometimes with a guarantee
- Structure
- Pre-shipment funding, post-shipment funding or ongoing facilities
- Australia-wide
- Yes
What is export finance?
Export finance is funding that supports a business selling goods or services overseas. Exporters typically spend money first: materials, labour, packaging, freight. Then they wait, sometimes months, for an overseas buyer to pay. Export finance fills the gap, so a good order does not become a cash crunch.
It can take several shapes: a loan to fund production, an advance against shipping documents or invoices, or an ongoing facility that rolls with your export cycle. Some arrangements are supported by an Australian Government guarantee, which can help a bank say yes where it otherwise would not.
Who uses export finance?
- Manufacturers selling machinery, components or consumer goods offshore
- Farmers, food producers and processors supplying overseas buyers
- Wine, seafood and specialty food exporters
- Businesses in an export supply chain, delivering to another exporter
- Service exporters, such as education, technology or consulting firms with overseas clients
- Businesses opening a first overseas market after a domestic track record
What does the government offer exporters?
Export Finance Australia is the Australian Government’s export credit agency. Its guarantees are given to a bank to help it approve finance for eligible export-related transactions. At the time of writing, its published criteria for guarantees include an annual turnover above $250,000, at least two years of trading, an Australian company number, a valid export contract (or supplying an exporter in a supply chain) and a need for support to obtain the full amount of bank finance. Guarantees start from $350,000. Criteria change, so always check the current details on Export Finance Australia’s website or on business.gov.au.
Austrade also publishes practical export guidance for Australian businesses, from market research to payment risk.
Government-backed support is one option among many. Whether it suits you depends on your size, track record and the transaction.
How do lenders view export deals?
Lenders typically focus on:
- The export contract. Who is the buyer, what are the terms and how reliable is the buyer’s payment history?
- Payment terms. Pre-payment, letters of credit, open account and other terms carry different risk. See letters of credit and bank guarantees.
- Your capacity to deliver. Production capability, supply chain and past performance.
- Margins. Enough profit to absorb shipping, currency and compliance costs.
- Security. Receivables, stock, business assets, property or a guarantee.
- Your financial records. Bank statements, BAS and financial statements. See how to get your BAS and financial statements.
Pre-shipment versus post-shipment funding
| Pre-shipment | Post-shipment | |
|---|---|---|
| Purpose | Fund materials, labour and production | Release cash after goods ship, before the buyer pays |
| Security often looked at | Contract, stock, business assets | Invoices, shipping documents, receivables |
| Typical risk | Delivery and production risk | Buyer payment risk |
| Related reading | Working capital loans | Debtor finance |
Many exporters need both stages covered. Matching funding to each stage avoids paying for money you do not need yet.
How does Ownright help exporters?
Ownright Custom Finance is built around solutions. Trevor Scott has more than 40 years of finance experience and leads a team that handles business, rural, asset and private lending. Exporters often need a combination: a facility to fund production, support for receivables once goods ship, and sometimes additional security from property when a bank wants more comfort.
If a bank has declined or only offered part of what you need, we look for lenders who treat export deals differently, and we discuss whether government-backed support may be worth exploring. We do not promise approval, and timing depends on the lender, the security and how quickly documents arrive. We arrange finance Australia-wide, including for regional producers who export through major ports.
An illustration
Illustrative scenario only. A food manufacturer wins its first overseas distributor. The orders are repeatable but the distributor pays on extended terms, and the manufacturer must buy ingredients and packaging up front. The bank will fund only part of the cost. We review the contract, the buyer, the manufacturer’s records and available security, then discuss a layered approach: production funding at the start, and receivables funding once shipments are invoiced, with the possibility of seeking government-backed support if eligible. The aim is to let the business accept the order without starving its day-to-day operations.
Mistakes exporters should avoid
- Shipping on open terms to an unchecked buyer. Do your homework on who is paying you.
- Ignoring currency risk. Movements can eat margin between quote and payment.
- Underestimating costs. Freight, insurance, certification and compliance add up.
- Overextending on one customer. A single buyer delaying payment can stall everything.
- Applying too late. Get loan ready before the contract deadline.
What documents help?
- The export contract or purchase order
- Details of the buyer and payment terms
- Recent business bank statements, BAS and financial statements
- Costings showing materials, labour, freight and expected margin
- A schedule of existing debts and security
- Details of property or assets that could be offered as security
Our guide on what documents you need for a loan covers more.
Where does export finance sit alongside other options?
Producers on the land may also want to read about agri loans and agribusiness finance. Businesses wanting flexible funding between shipments might consider a business line of credit. Those with property equity can look at a secured business loan.
How should an exporter manage payment risk?
Funding solves the cash gap, but it does not remove the risk that a buyer never pays. Exporters commonly think about this in layers.
First, know your buyer. Check who they are, how long they have traded and what other suppliers say about them. Second, choose payment terms to match the risk: payment in advance is safest for you, letters of credit sit in the middle, and open account is the most exposed. Third, consider insurance or a guarantee for larger or newer relationships. Government and private providers publish material on these tools.
Currency is the other big variable. If your contract is priced in a foreign currency, the amount you receive in local terms can move between quote and payment. Some exporters manage this through arrangements with their bank or a foreign exchange provider, and your accountant can advise on whether that suits you.
A lender will look at how well you have thought about these risks. A clear picture of your buyer, terms and currency exposure usually strengthens an application, and it protects your business whether or not you borrow.
Ready to fund your export order?
Sounds like you’re looking for export finance. We’re the lending experts in helping Australian exporters get paid time to grow, so click the button below and see if you qualify. If you want to talk it over first, call 03 7043 7233.
How it works, step by step
- 1
Step 1
Tell us about the export contract: buyer, market, value and payment terms.
- 2
Step 2
We identify where the cash gap sits, before shipment, after shipment or both.
- 3
Step 3
We approach lenders and, where suitable, look at government-backed support.
- 4
Step 4
Funding is put in place so you can produce, ship and wait for payment comfortably.
Frequently asked questions
What is the difference between pre-shipment and post-shipment finance?
Pre-shipment finance funds the costs of producing or sourcing goods before they ship, such as materials and labour. Post-shipment finance releases cash after goods are shipped but before the overseas buyer pays. Many exporters need both. We help work out which stage is draining your cash.
Is there government support for exporters?
Yes. Export Finance Australia is the Australian Government's export credit agency, and its guarantees can help eligible businesses access bank finance. Eligibility criteria apply, such as trading history and turnover, and details change, so check its website for current requirements. We can discuss how that fits with other funding.
Can I get export finance with a short trading history?
It can be harder. Lenders often prefer a track record, but a strong export contract, a reputable buyer and extra security can improve the picture. Some government-backed options also have minimum trading requirements. We tell you plainly what looks achievable for your business.
Do I need to be a large business to export?
No. Many exporters are small and medium businesses, including farms, food producers, manufacturers and service providers. Size matters less than a solid contract, margins that work and a credible plan. We look at the whole picture rather than just turnover.
What risks should an exporter think about?
Common risks include buyer non-payment, currency movements, shipping delays and changes in the destination country. Insurance, payment terms such as letters of credit and careful buyer checks can reduce these. Official sources like Austrade and Export Finance Australia publish guidance, and we focus on structuring the funding.