A new tool to increase your international distributors network
ICOMIA has developed a guide which promises to help solidify your distributor networks. The ICOMIA Distributors’ Guide has been developed to assist anyone operating
in the marine industry, whether boat dealers, distributors or boat builders, to develop and implement an international distributors’ network.
Despite dramatic changes over the last few years, the basics of international business development, and developing export markets, have remained largely the same. This start- up guide outlines the requirements and considerations needed to make the right decisions when selecting a distributor for your company and how to set-up a successful distribution networks for a wide range of products.
Email email@example.com to request this member-only guide.
Export Credit Office helping NZ companies with bonds needed to operate in foreign markets
If you’ve ever felt the effects of advance payments or warranty bonds effecting your working capital, there’s a government agency which can help.
Advance payment, performance and warranty bonds are often required by foreign customers seeking additional confidence and provide a buyer with financial protection in the event their contractor fails to perform its contractual obligations.
Because of the ‘on-demand’ nature of these bonds, an exporter’s bank typically seeks security for the full amount, which may limit an exporter’s available working capital. The New Zealand government has an agency that can support exporting firms with these bond and working capital challenges. The Export Credit Office (NZECO), a commercial unit within Treasury, can provide a Crown-backed guarantee to an exporter’s bank when the exporter has insufficient security for the bond. Often this support enables growing exporters meet these bonding requirements without it constraining their bank credit facilities.
NZECO has supported the bond requirements of several exporters across the marine industry. One example is Auckland-based, Southern Spars’ contract to supply masts and rigging for an 85m ketch being constructed in Europe. Southern Spars negotiated a large advance payment to fund their up-front project costs, and the buyer required this deposit to be matched by an advance payment bond which was to extend for the life of the two year contract.
“With the assistance of NZECO we were able to provide the required bond and importantly demonstrate we had the support of the NZ Government”, said Daniel Malherbe, Group Chief Financial Officer.
NZECO only supports commercially sound transactions, and must be satisfied that the exporter
has proven technical, managerial and financial capabilities to perform the bonded contract. This due diligence process can take several weeks, and therefore NZECO welcomes being involved as early as possible. NZECO charges risk-weighted premiums for its guarantee as it is required to be a full cost-recovery operation.
For further information (including exporter case studies) please visit www.nzeco.govt.nz or call Miles Fleming on (04) 917 6938.