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Export Buyer's Credit

Export buyer’s credit is intended for:

  • companies exporting to other countries (or foreign investors)

Characteristics of Export buyer’s credit:

  • a specific loan provided by the exporter’s bank to a foreign buyer/debtor
  • the debtor may be the foreign buyer’s bank or the foreign buyer himself/herself
  • usually provided up to the level of 85% of the value of the commercial contract, 15% of the value of the contract is settled by the foreign buyer by means of payment in advance
  • intended for financing export of goods and services which primarily originate in the Slovak Republic
  • cannot be drawn on until after performance of the agreed deliveries or work by payment of the amount directly to the exporter’s account
  • conditions for provision and payment of the loan are defined in the specific loan contract
  • provision of financing via Export buyer’s credit is usually insured by the Export-Import Bank of the Slovak Republic
  • insurance of Export buyer’s credit by the Export-Import Bank of the Slovak Republic:
    • covers credit risk of repayment of receivables from loans provided
    • protects the financing bank against the risk of non-payment of receivables by the foreign buyer or his or her bank as a result of territorial or commercial risks which cannot be insured on the market
  • the exporter must be a Slovak corporate entity (individually or as the leader of a syndicate with a foreign entity)
  • the project must contain the set share of deliveries of Slovak origin
  • analysis of the project and the debtor must be acceptable the financing must be soundly secured
  • cannot be used for financing small-scale consumer goods and agricultural products

Advantages of Export buyer’s credit:

  • fast payment of export receivables of the supplier from a loan provided to the foreign buyer or his or her bank
  • the loan does not burden the exporter’s balance sheet, the loan debtor is the foreign buyer or his or her bank
  • the loan allows Slovak exporters participating in tenders abroad to submit a financing proposal together with a technical offer. Komerční banka, a.s. prepares the offer of conditions subject to which it is willing to provide financing
  • simpler negotiation of related loan requirements of the exporter
  • help when choosing a suitable foreign partner on the basis of analyses performed by the parties participating in the project

Export buyer’s credit allows you to:

  • finance investment units including accompanying services and commissioning of the investment
  • finance partial deliveries of an investment and engineering character, including deliveries of spare parts
  • finance export of ships, nuclear power plants and aircraft (according to special regulations for this type of loan provision)
  • expand your foreign trade possibilities

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