The loan is irrevocable without recourse.
You will receive the full nominal value of your short-term receivables.
Clear your balance sheet by assigning receivables – the bank acts as the creditor.
Companies that export products and/or services.
Receivables assigned to the bank are usually insured by EGAP.
About Supplier’s credit
- The ideal solution for exporters who want to be paid for their products and/or services immediately after delivery or who want to eliminate the risk of the buyer defaulting
- The funds are available immediately after delivery
- Credit terms for buyers – exporters can give their foreign buyers an open credit for delivering products and/or services
- The resulting receivables are assigned to the bank – for a fee and without recourse from the exporter
Amount of receivables
- Up to 100% of a short-term loan receivable with a maturity up to 2 years.
- Up to 85% of a receivable for medium and long-term loans with a maturity longer than two years – buyers must pay 15% of the receivable in advance.
- Receivables assigned to the bank are usually insured by EGAP
- The Export refinancing facility also reduces the exporter’s cash flow deficit risk
- The terms and conditions for a supplier’s credit are always specified in a separate agreement between the exporter and the bank. The bank becomes the owner of the receivable and the creditor with respect to the buyer. Therefore the receivable can be removed from the exporter’s balance sheet.
You might also like to know
- “Bf” insurance program: short-term export supplier’s credit financed by a bank
- “Cf” insurance program: medium or long-term export supplier’s credit financed by a bank
- The insurance covers the risk of the buyer defaulting because of territorial, political or other commercial risks that cannot be covered by standard commercial insurance
- Three party insurance policy – EGAP + KB + exporter
Contractual documents needed for the funding:
- Purchase contract between the exporter and the foreign buyer
- Receivable assignment agreement between KB and the exporter
- Three party insurance policy – KB (insured), EGAP (insurer), and the exporter