NZEC can help with exporting challenges
Being an exporter is a good way to grow your business, but there can sometimes be financial challenges along the way.
If you’re an exporter, or thinking of becoming an exporter, the New Zealand Export Credit (NZEC) can help you overcome some of the challenges you may face.
As New Zealand’s export credit agency, NZEC’s main job is to provide financial support for New Zealand export businesses – both big and small.
NZEC also works with other government agencies to promote Kiwi exports and export-related investments. They do this by providing trade insurance cover and financial guarantees that cover any risks you might come across when you do business internationally.
Before becoming an exporter
Before taking the first steps to becoming an exporter there are some business boxes that need to be ticked.
Among the questions you’ll need to ask yourself are:
- How will I manage my cash flow? Will I have enough money to pay my suppliers?
- What happens if a customer doesn’t pay me, am I covered?
- How can I get my business ready to grow if export orders increase?
These are questions NZEC can help answer for you.
How NZEC can help you
NZEC can provide help with the following:
- Providing insurance to help you deal with the effects of a buyer cancelling a contract or not paying.
- Helping you clinch export sales by providing payment terms, or loans to your customer if a lack of funding is stopping a deal going ahead.
- Helping you find extra trade finance by providing a guarantee to your bank that they will be paid -- NZEC can promise to pay if you can’t pay.
Case study
Kiwi company TRG Natural Pharmaceuticals is one of many companies that have benefitted from NZEC help.
TRG, who develop medical products using natural ingredients like New Zealand honey and kanuka oil, signed their first licence deal with a large American company in 2020. The result was they moved from doing small online sales of about $200,000 a year to a revenue of over $5.8 million.
But while the orders were great, TRG had to wait a long time before getting paid. This meant they needed outside finance so they could pay their suppliers.
This is where NZEC stepped in, providing security and acting as a guarantor to TRG’s bank.
The result was:
- TRG could order more raw materials.
- Plan production with its manufacturers more efficiently.
- They could increase production and grow the business.
To read more about TRG you can click on the link below.
Innovative, scientifically proven and backed by NZEC support(external link) — The Treasury
How you qualify for help
To qualify for NZEC support you need to:
- be a New Zealand registered company
- be an international subsidiary of a New Zealand company
- show there will be benefits for New Zealand from your exports.
For more information check out:
New Zealand Export Credit Office(external link) — The Treasury
Understand what you need to know about exporting
New Zealand Export Credit (NZEC)(external link) — NZEC Linkedin
