Discount Credits for Export Receivables
EXIMBANKA SR provides financial resources for the support of export activities (on the basis of an export contract between an exporter and a foreign buyer) of an exporter by providing acceptance credits for receivables from export in the form of a discount credit issued by the exporter on the advice of EXIMBANKA SR with a clause without protest, on which the credit bank or credit business may be listed as a bill guarantor.
Advantages for the exporter
- Entry to riskier territories with approved buyers or a territory with a lower risk and unapproved buyers, the combination of insurance and financing shortens and simplifies the path to the money for export.
- The loan enables the time period for payment of invoices to be extended, which for the buyer means a supplier’s credit, the advantages of which are striking mainly on territories with a higher interest rate in comparison with the country of export (Slovakia).
- The amount of the loan depends on the amount of the insured limit without any other possible limiting factors.
- Risk of the business case aimed primarily at an insured foreign buyer.
- No administrative fees.
How it works
| Diagram explanation note | |
|---|---|
| 1. | Export contract |
| The Exporter concludes the contract or receives confirmed order and export goods or service. | |
| 2. | Provision of credit for export receivables |
| EXIMBANKA SR provides credit for financing of export receivables up to the amount of export invoice or set of invoices, reduced by retention under the insurance contract (usually 10 % - 15 %). | |
| 3. | Credit repayment |
| Repayment of credit directly to the EXIMBANKA SR or exporter´s account with EXIMBANKA SR from the payments from the foreign buyer in accordance with due dates of export invoices. After the payment, is the difference between the credit and payment from the foreign buyer (retention reduced by interests) sent to the exporter. |
Frequently asked questions
For what time period is this credit provided?
In the case of a short-term credit for an export receivable the maturity is at most 1 year (30 – 360 days).
What are the basic conditions for providing the credit?
• Existence of an export contract or confirmed orders.
• Drawing of the credit on the basis of buyer invoices own bill of exchange of the exporter and a document confirming export.
• A loan up to the amount of 75 – 90% of the value of each export invoice.