Everything to Know About the Small Business Export Loan

This program aims to provide businesses with the necessary funds to satisfy their cashflow needs and support their export transactions when their bank is unable to help. It is an unsecured, government-backed loan solution with an easy online application and expedited approvals, targeting businesses with an annual turnover exceeding $250,000.

Program Features

• Loans ranging from $20,000 to $350,000 are available.
• The interest rate is 13.67% per annum, with interest calculated monthly on the outstanding loan balance. The interest component of monthly payments will decrease as the outstanding loan balance decreases over the life of the loan.
• Online application takes as little as 20 minutes, with funds becoming available within 72 hours of approval. Applicants have the option to include group-mart configured references.
• The program allows for the submission of applications on behalf of Australian exporters by accountants, consultants, and other third parties.

Additional Information

• A standard application fee of $1,000 is deducted from the settled amount for approved applicants only.
• Repayments consist of equal monthly instalments covering both principal and interest.
• Early repayment options are available, enabling applicants to settle the loan in full at any time during the term without incurring charges.
• Applicants are strongly advised to seek independent legal and financial advice when making decisions in relation to the program.

Eligible Activities

• Contracts and purchase orders with international buyers and Australian exporters.
• Costs associated with export market development to promote the goods and services.
• General working capital for others export-related activities.
• Equipment finance for the acquisition of plant or equipment.
• Tourism services for international visitors.
• Online businesses seeking to expand their international client base.

Who Can Apply?

Eligible business applying must:

• Have an annual turnover between $250,000 and $10 million in the last financial year, along with net profit from the same period and/or projected for the current financial year.
• Demonstrate at least 20% revenue from exports in the last 12 months or as an average over the last three years, specifically for support related to tourism services, online business, equipment finance, and working capital. No minimum revenue from exports is required for international purchase orders/contracts, purchase orders from Australian exporters/contracts with Australian exporters, and export market development.
• Have a management and trading history of at least two years.
• Be an Australian registered company. An Australian Company Number (ACN) is required.
• Ensure that the loan is used to finance export-related transactions, including the export of Australian goods and/or services, international tourism growth, and online sales to international customers.
• Confirm that there is a benefit flowing to Australia in connection with the supported contract or project.
• Operate within the market gap, working closely with banks and other financial institutions to provide financing support to export businesses.
• Agree to adhere to the Environmental Social Policy + accept the Credit Information Policy.

Next Steps

Consider applying for the small business export loan at https://business.gov.au/grants-and-programs/Small-Business-Export-Loan

Talk to LINK Advisors if your business is exporting or has the potential to do so- we can assist you with structuring, best practice and more.