Financing of export supplier credit

A loan intended for financing of exporter’s accounts receivable for goods or services supplied to foreign buyers.

How may we
assist you?

Ideal for exporters,
who wish to receive
payment immediately after
delivery or eliminate
the risk of
buyer’s default 

Deferred payment option available for your foreign clients

Eliminate the risk of buyer’s default

Receive payment immediately after delivery

Prepare the accounts receivable purchase prior to contract signing

ADDITIONAL BENEFITS

  • Supplier credit available on a non-recourse basis

  • Assign accounts receivable to clear your balance sheet

USEFUL INFORMATION

  • Ideal solution for exporters who wish to receive payment for goods or services immediately after delivery or eliminate the risk of buyer’s default
  • Receive liquid assets immediately after delivery
  • Deferred payment for customers – export supplier credit provided by exporters to buyers in respect of their goods and/or services
  • Resulting accounts receivable are assigned to the bank – for a fee and on a non-recourse basis in respect of the exporter 

Accounts receivable of up to:

  • 100% of their amount for short-term loan with maturity of up to 2 years
  • 85% of their amount for medium-term and long-term loans with maturity over 2 years – buyers must pay 15% of the accounts receivable in advance
  • Accounts receivable assigned to the bank are usually insured by EGAP
  • Export refinancing facility also mitigates exporter’s cash flow deficit risks
  • Supplier credit terms and conditions are always set down in a specific agreement between an exporter and the bank – this specific funding is always registered as the buyer’s risk and does not affect the balance sheet – the bank becomes an owner of the accounts receivable and a creditor

EGAP insurance coverage:

  • “Bf” insurance coverage: short-term export supplier credit financed by a bank
  • “Cf” insurance coverage: medium or long-term export supplier credit financed by a bank 
  • Insurance covers the risk of the buyer’s default due to territorial, political or commercial risks that cannot be covered by standard commercial insurance
  • Trilateral insurance policy concluded EGAP + KB + exporter

This product is intended for companies that export their goods or services to other countries.

Contractual documents needed for the funding:

  • Commercial contract between an exporter and a foreign buyer
  • Accounts receivable assignment agreement between KB and an exporter
  • Trilateral insurance policy – KB (insured), EGAP (insurer), and the exporter

Accounts receivable assigned to the bank are usually insured by EGAP.