What is Buyer’s credit
Buyer’s credit is a loan facility on medium/long term (from 2 to 10 years) offered to an Importer by Banks or other Financial Institution to finance the purchase of capital goods and services. It can be granted to sovereign counterparts (States and government entities), non-sovereign public entities, private foreign counterparts, so that they can provide the payment to the exporter of the amount due for the supply of goods or services, or for the execution of “turn key basis” plants.
Why Buyer’s Credit
- It allows the exporter to support a commercial offer to his client with a financial loan, issued by an international bank, according to the need of the importer to obtain a deferred payment;
- It allows the importer to enter the international financial market;
- The exporter gets a cash payment against presentation of delivery documents or rendered services;
- Coverage of political and commercial risk.
We are in touch with top tier international banks which, after a precise evaluation of the debtor/importer, are able to stipulate a loan agreement foreseeing the payment to the exporter against presentation of delivery documents or rendered services.