• Export Supplier Loan

    A special-purpose loan for a foreign buyer to finance the export of goods and services from the Czech Republic.

No waiting

Get quick finance for exporting goods and services.

Smart

Improve your company’s financial position.

Convenient

Offer your customers favourable financing together with your products.

Simple

Make negotiating your own funding easier.

Why KB?

Grow

We will help you increase your international trade potential.

Select

We will help you analyze potential customers and select the right business partner.

Comprehensive

We provide guarantees, risk hedging, and production pre-financing.

How to get this product?

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Intended for

Companies that export goods or services to other countries.

Specific purpose

Buyer’s Credit is for financing the export of goods and services, mainly from the Czech Republic.

Credit insurance

Buyer’s Credit is insured by EGAP – insurance cover “D”.

About the Buyer‘s credit facility

  • A special-purpose loan from the exporter’s bank to a foreign buyer. The borrower (debtor) can be either  the foreign buyer’s bank or the foreign buyer directly
  • The Buyer‘s credit facility is for:
    • Financing large investment projects including the services and costs of launching the projects
    • Financing construction and machinery, including spare parts
    • Financing the export of ships, aircraft, railroad cars and power plants according to special regulations
    • Expanding international trading
  • The Buyer‘s credit facility will provide funds to quickly settle export receivables
  • As the foreign buyer or the buyer’s bank is the borrower the loan will not affect your company’s balance sheet  
  • If you are taking part in a foreign tender, you can present a loan term sheet together with your bid – the bank will prepare a proposal of the terms and conditions for providing the funds
  • Make negotiating additional funds for production pre-financing, guarantee instruments, currency risk hedging easier
  • We will help you select the right foreign partner by analysing the project parties
  • The loan  is usually up to 85% of the commercial contract value

Transaction scheme

Scheme: Loan contract with the customer

You might also like to know

  • A Buyer‘s credit facility is for financing the export of goods or services originating (at least 50%) in the Czech Republic
  • A Buyer‘s credit facility can only be drawn after the goods or services have been delivered – the money is paid directly to your KB company account
  • A separate loan agreement is always concluded specifying the terms and conditions such as drawing and repaying.
  • The loan can be up to 85% of the commercial contract value – the foreign buyer must cover 15% of the contract value in advance
  • A Buyer credit facility  can be insured with EGAP
  • EGAP Import Insurance of an Buyer’s credit:
    • can be used to finance large export contracts to higher risk  countries
    • default risk protection for the financing bank. The insurance also covers political risk.

Important information

  • The exporter must be a legal entity domiciled in the Czech Republic or exceptionally an individual (both separately or a member of a consortium with a foreign entity)
  • A set portion of the deliveries must be of Czech origin
  • The project and the borrower  must be approved both by the bank and EGAP
  • The export contract and its financing must not breach any international rules or sanctions