Travelex and EFIC help exporters manage their foreign exchange risk
11 May 2010
Travelex and the Australian Government’s export credit agency, Export Finance and Insurance Corporation (EFIC), today announced an agreement that will allow Travelex to provide eligible exporters with higher foreign exchange trading limits without the need for additional security from the exporter.
EFIC’s foreign exchange facility guarantee will provide the potential for Travelex customers to further increase their foreign exchange trading limits, thereby allowing them to expand their hedging programs protecting their profits. Importantly, the customer will not be required to provide additional security to Travelex in order to take advantage of the guarantee.
Travelex Regional Managing Director, Asia-Pacific and Japan, Kerry Agiasotis, said the partnership is intended to directly assist exporters who find themselves unable to fully hedge their sales because they have reached the limit of their existing foreign exchange facilities.
“Foreign Exchange Hedging is an important risk management tool for exporters, protecting them from adverse currency movements. However, not all exporters are able to obtain an FX facility that allows them to adequately cover all of their hedging needs, without either incurring significant cost or tying up much needed working capital. This can potentially put their profit at risk. With EFIC’s foreign exchange facility guarantee, exporters will be able to access increased limits from Travelex, providing them with the ability to better protect themselves against currency volatility.”
“The partnership with EFIC is a natural fit for Travelex – sharing a common aim in working with Australian exporters to help them engage in international trade. Our goal is to establish close working relationships with our customers, allowing them to focus on growing their business, rather than be distracted with concerns about foreign exchange. Today’s announcement is a very practical way that we can help to achieve that goal,” Mr Agiasotis said.
Andrea Govaert, EFIC’s executive director for SMEs, said: “EFIC’s new foreign exchange facility guarantee broadens the ways in which EFIC can help exporters manage the risks of international trade and protect their export business from loss due to events beyond their control.”
“The guarantee is designed to assist small and medium-sized businesses, in line with EFIC’s focus on helping SME exporters overcome financial barriers and move into global markets,” she said.
To apply for this new service, exporters need to be (or become) a Travelex customer and must also meet criteria associated with this product.
To find out if you are eligible to take advantage of this new service, please contact Travelex on 1800 730 400 or enquiry@travelex.com.au, or refer to www.travelexbusiness.com/au.
Click to learn more about EFIC’s foreign exchange facility guarantee.
About Travelex Global Business Payments
Travelex is the world’s largest non-bank foreign exchange and payments specialist, with operations across four continents and 6,000 employees worldwide.
For more than 30 years, Travelex has been providing industry-leading service and technology for managing FX risk and making payment processing quick and reliable for businesses of all sizes.
Every year, more than 35,000 corporate clients and 30 million customers trust Travelex to manage their foreign exchange requirements. Travelex was recently recognised by TowerGroup research as the global industry leader in payments innovation for SME’s.
About Export Finance and Insurance Corporation
EFIC provides finance and insurance solutions to help Australian exporters overcome the financial barriers they face when growing their business overseas.
As the Australian Government’s export credit agency, we can help successful businesses to win, finance and protect export trade or overseas investments where their bank is unable to provide all the support they need.
We work directly with exporters or with their financial institutions to provide loans, guarantees, bonds and insurance products which can be tailored to meet the needs of both large and small exporters.
EFIC is uniquely placed to do this: we use over 50 years of export finance and industry expertise, contacts at financial institutions around the globe, the strength of our AAA rating and an entrepreneurial business approach to make export deals happen.
We practise responsible lending and uphold social and environmental best practice in the transactions we support.
For further information or interviews, please contact:
Travelex:
Gavin Melvin
Senior Consultant
Statecraft
M: +61 401 430 299
gavin.melvin@statecraft.com.au
EFIC:
Jennifer Whittle
Associate Director, Marketing
Communications
Export Finance and Insurance Corporation
Ph: +61 2 9201 2276
jwhittle@efic.gov.au
