Financing of export supplier credit

• 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.