FMG, ANZ unveil Aboriginal business funding model

FORTESCUE Metals Group and the ANZ have joined forces to launch a $50 million lease finance solution for the Aboriginal businesses supplying FMG.
FMG, ANZ unveil Aboriginal business funding model FMG, ANZ unveil Aboriginal business funding model FMG, ANZ unveil Aboriginal business funding model FMG, ANZ unveil Aboriginal business funding model FMG, ANZ unveil Aboriginal business funding model

FMG and ANZ have partnered to make it easier for FMG Aboriginal contractors to get access to equipment leasing funds.

Noel Dyson

Under the plan FMG will provide a guarantee for eligible businesses to access finance at a competitive rate through ANZ to lease whatever equipment they might need.

FMG CEO Nev Power said access to capital was a major impediment stopping Aboriginal groups building sustainable businesses.

“We are proud to be able to provide these businesses with tools to help build value and sustainability, which in turn creates employment and development opportunities,” he said.

ANZ managing director, institutional Australia Graham Turley said the bank could use its expertise to help Aboriginal businesses develop sustainable operations while also strengthening its relationship with the business owners and their communities.

Indigenous Affairs Minister Nigel Scullion said the funding model would give Aboriginal businesses an opportunity to deliver contracts more profitably.

“The Indigenous business sector is growing rapidly, with more and more commercial opportunities opening up so it just makes sense for big business to find solutions to the financial barriers many Indigenous businesses experience as they seize these opportunities,” he said.

“The businesses registered with Supply Nation are growing at an average annual rate of 12.5%.

“Collectively these businesses now earn more than $1 billion a year. But access to capital remains a key constraint to growth.

“Corporate Australia has a key role to play in ensuring Indigenous Australia are at the heart of the Australian economy.”

Scullion called on all Australian businesses to follow FMG and ANZ’s lead.

Supply Nation started out as the Australian Indigenous Minority Supplier Council.

It has been providing Indigenous businesses with access to corporate and government buyers.

This year FMG won the Supply Nation Corporate Member of the Year and Outstanding Impact Awards.

In May FMG introduced 14-day from invoice payment terms for Aboriginal businesses nationally and small businesses in the Pilbara to improve operational cash flow and ease pressure on suppliers.