Arranging a buyer credit for a foreign buyer

Realisation of an export transaction may require that financing is arranged for a foreign buyer. The buyer may already request a financing offer when bids are prepared. Thus, the option of arranging financing gives the exporter a competitive edge.

A buyer credit to a foreign buyer is granted by a bank. Finnvera may share the risk involved by giving the bank a Buyer Credit Guarantee. The enterprise should therefore start discussions with potential financier banks at the same time as Finnvera is contacted.

As a rule, the credit term in buyer credits is over two years. This means that Finnvera can participate in the provision of financing within the framework of the OECD Arrangement. However, Buyer Credit Guarantees can also be used in shortterm exports. Then the payment instrument must be a bill of exchange, a promissory note or some other transferrable debt instrument, and the products must be exported to a country outside the EU and other Western industrialised countries.

Products

Buyer Credit Guarantee

Online Services

Finnvera's customers can submit applications for business financing safely and securely by using Finnvera plc's Online Services.

asioi sähköisesti

For Business Angels

Register to be part of our business angel network.

investor extra
Close

Buyer Credit Guarantee

A Buyer Credit Guarantee is a security to the lender in case of a credit risk caused by a foreign buyer, the buyer's bank or country. The exporter receives payment in cash for goods sold on credit, while the credit risks are transferred from the exporter to the lender and further to Finnvera.

The guarantee covers commercial risks and/or political/sovereign risks. The coverage provided is normally 90% (buyer risk) or 95% (bank risk) for commercial risks and 100% for political and sovereign risks when a sovereign entity acts as a borrower or a guarantor.

A Buyer Credit Guarantee can be used for various medium/long-term credit arrangements in connection with financing of the export of capital goods. Such arrangements include buyer credits for individual transactions, bank-related and project-related credit lines, ship financing, as well as forfaiting and leasing.

The guarantee can also be used for short-term exports if the buyer provides the exporter with a transferable credit instrument, e.a. bill of exchange or promissory note as payment.

The guarantee can be granted to domestic and foreign financial institutions.

As an official export credit agency Finnvera can’t grant guarantees with a risk period of less than 2 years (manufacturing period + repayment period) to the following markets:

Attachments

Online Application (open a new web browser)

Short term

Application, short term (PDF)

Long term

Application, medium term/long term (PDF)
Anti-Bribery Declaration of the Guarantee Holder (PDF)
Anti-Bribery Declaration of the Exporter (PDF)
Description of the origins in the export contract (PDF)
Environmental impact questionnaire (PDF)

General conditions for Buyer Credit Guarantees (PDF)
Brochure (PDF)

Concessional loans can be granted to Lower Middle Income and Low Income Countries to support the economic and social development of these countries.
Concessional loans