Export finance refers to foreign bank financing of large supplies of the borrower (buyer) on security of the ECA of the supplier host country by means of export credit of the supplier or buyer.

The principal areas of export finance application are as follows: the import of fixed assets, raw materials, finished products in the fields of agriculture, metallurgy, power engineering, mechanical engineering, chemical industry, pharmaceuticals, food industry including confectionary and fish, etc.

According to the type of imported goods, required loan period and the amount of foreign trade contract, there isshort, medium and long-term financing singled out.

Short-term financing refers to a payment delay (starting from 30 days) from the foreign supplier under the cover of an ECA. It is mainly used for the purchase of raw materials and finished products.

Medium- and long-term financing refers to a foreign bank export credit (of either supplier or buyer) to provide large supplies of equipment and spare parts on security of an ECA. The maturity of the loan varies from 3 to 7 years.

Project Documentation

The financing bank as well as the respective ECA should be provided with the required documents for estimating the creditworthiness of the company (read more).