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National Meats Uses the NZECO Short Term Trade Credit Guarantee to Continue Financing Profitable Trade

Page updated 2 Jun 2009

Glen Thompson, Commercial Manager, National Meats approached the New Zealand Export Credit Office (NZECO) in early 2009 the day after hearing that their trade credit insurance was being withdrawn by their insurer on a key UK buyer. With credit terms provided to their buyer, this insurance was a key part of the security package for bank funding.

National Meats quickly identified a range of potential solutions to this issue. Seeking a letter of credit, cash in advance, or walking away from the trade were not sensible options for the trade they had fostered over five years.  The founders injecting capital was a solution in the interim but meant that they could not pursue further investment into the infrastructure side of the business, so seeking replacement trade credit cover was the preferred option.

After positively assessing the credit worthiness of their buyer the NZECO issued their Short Term Trade Credit Guarantee to National Meats, which was then assigned to their bank. This meant the founders could secure their capital investment programme, whilst the trade credit guarantee provided security for working capital facilities. 

Glen Thompson said "this was the first time we have required the NZECO, and the solution they provided means we can continue to trade confidently and finance the demand we receive from the UK market for our added-value products". Glen also stated that what impressed National Meats was "the NZECO’s commercial understanding of the market and the excellent co-operation received in putting the Short Term Trade Credit Guarantee in place."

Carmen Moana, Manager of the NZECO outlined that this NZECO product was developed and introduced in February 2009, in response to the trade credit insurance market constraints that started affecting New Zealand exporters in late 2008. She said "with approximately 90% of global trade conducted on some form of credit terms and the increased demand from the market to protect those terms, this has meant that trade credit insurance capacity is being reached on some buyers, industries and countries. The NZECO is one of a growing number of export credit agencies globally that have stepped into the short term trade credit insurance market to assist continued export trade, like that undertaken by National Meats".


The NZECO, New Zealand’s export credit agency, provides financial guarantee products for New Zealand exporters. The NZECO’s products help exporters manage risk and capitalise on trade opportunities around the globe.

The Short Term Trade Credit Guarantee product enables the NZECO to provide a short term trade credit guarantee to exporters and their banks where overseas buyers are offered repayment terms of less than 360 days. The NZECO is also working with the private trade credit insurers on ways to reinsure their risks.

About National Meats Limited

National Meats is a privately owned cooked meat products exporter based in Taupo, New Zealand. Their specialties include sous-vide fully cooked entrées, intermediate products for ready meal manufacturers and retail packs.

Customers include importers, distributors, manufacturers and retailers around the world. They have been successfully exporting container quantities since 2004.
Contact National Meats: 09 921 3659.

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