Melbourne-based GP Graders, the world leader in grading and packing machinery for the cherry industry, owes its success in part to innovative export funding initiatives designed to assist the growth of Australian businesses.

The company's ability to put together financing packages that were suitable to it and its overseas clientele was crucial and involving Australia's Export Finance and Insurance Corporation (EFIC) had proved a 'deal winner', according to Company Director Stuart Payne.

Launched in 1963, GP Graders provide turn-key packing house machinery for apples and pears, citrus, stone fruit and cherries. The company's range has been developed with an emphasis on speed, accuracy and gentle handling.

Mr Payne said GP Grader's export profile had grown considerably in the past five years.

"In 2001 five percent of our business was export now it is 75 percent. Being acknowledged as the world leader in grading and packing equipment for the cherry industry has fuelled the growth…we now have 25 machines in Turkey, 25 in Chile, 12 in Italy and 12 in the United States."

Mr Payne said due the cost of the machines (most sales are in vicinity of AUD$1 million) it was important to be able to put together financing packages that helped clinch the sale.

"We always include EFIC in the mix when it come to determining how we can finance an export deal and I can't speak highly enough of the organization and its staff … they are exceptionally supportive of Australian companies.

"This support proved to be a deal winner in a sale we secured with a major processor in Turkey.

"All quotes now submitted to overseas customers offer EFIC's Export Finance Guarantee. We provide a sample terms structure and repayment schedule based on contract value.

"The Guarantee is essentially an insurance policy against counterparty risk for 85 percent of the CIF value of the goods. EFIC's absorbtion of the risk, for which it charges a fee, allows the Australian bank, in our case Westpac, to offer the foreign bank, thought a Letter of Credit, very low financing rates.

"The structure can be 4-5 years in duration with a minimum of two repayments per year. The term matches the typical write down period for capital equipment in horticulture.

"The more deals we do the less painful the process. Our most recent deal has run very smoothly. We receive a 15 percent payment on order and the 85 percent balance on presentation of Bill of Lading documents," he said.

Mr Payne said GP Graders was Australia's largest and most innovative manufacturer of fruit grading machinery and now had hundreds of machines located all over the world.

"All our machinery is developed and manufactured within Australia, except for the optical devices which have been jointly developed in Holland.

"The technology we have put together allows processors to accurately grade their fruit and attain better price premiums as a result. One grade difference can mean an additional AUD$4-6/kilogram in price.

"The industry is moving to electronic grading and we are at the forefront of developing the technology.

"Our new machines come equipped with two cameras (one colour and one black and white) to grade on size and colour. They operate at a rate of 34 pieces of fruit a second and are 94 percent accurate on size and 100 percent accurate on colour … a great leap ahead of the 83 percent you get with mechanical grading," he said.