Buyer’s Credit – Financing Directly with the Buyer
With a SERV-backed Buyer’s Credit, Xport Finance provides long-term financing to the foreign buyer. The financing is structured on a project basis and is typically disbursed during the production and delivery phase, aligned with the supply contract and project progress.
Additionally, a portion of the financing costs can be included in the credit.
Features of Long-Term Buyer’s Credit Financing
Buyer’s Credit is aimed at international customers who wish to finance capital goods on a long-term basis. Xport Finance provides SERV-backed financing to the foreign buyer, whereby invoices under the supply contract are paid directly by Xport Finance to the exporter, debiting the credit.
Project-based Buyer’s Credit allows the importer to diversify their financing partners, and the financing terms for buyers, particularly in emerging markets, are often more attractive than comparable local financing (interest rate and credit term). The importer’s cash outflow during the delivery period can be minimized by co-financing all financing costs, such as the SERV insurance premium, construction period interest, and Xport Finance’s one-time credit fee, within the framework of the Buyer’s Credit.
Disbursement to the Exporter Along Project Milestones
Typically, the payment terms in the supply contract are agreed between the exporter and importer such that disbursement to the exporter follows project progress. This allows the exporter cash-flow-neutral pre-financing of the order. The buyer benefits from a multi-year credit term and can repay the credit from operational cash flow after commissioning of the capital goods.
Benefits for exporter and buyer
- Option of Long-Term Financing for the Buyer as a Sales Argument
- the exporter receives indirect payment security through SERV coverage
- long financing terms possible at attractive conditions
- Optimization of Importer’s Cash Outflow Until Commissioning
Request Buyer’s Credit Now and Successfully Finance International Projects
Whether you need a specific quote or have initial questions about financing: We take the time to address your needs and find the right solution for your company.