Export Guarantee

Export Guarantees – an instrument for covering domestic needs for collateral in exports

By means of an Export Guarantee, an exporter can acquire pre-delivery or post-delivery financing for working capital from a bank. An Export Guarantee can also serve as countersecurity for a bank when a bond is given in favour of a foreign buyer (a bid bond, an advance payment bond, a performance bond or a warranty period bond).

Export Guarantees can be issued for the following purposes:

• provision of financing for pre-delivery working capital needs in export projects, such as financing for manufacturing costs and raw material purchases
• provision of financing for post-delivery working capital needs (financing to cover the buyer’s payment period
• bonds pertaining to delivery contracts (bid bonds, advance payment bonds, bonds for manufacture, delivery and warranty periods)
• export of services, installation, planning, etc.(construction companies, engineering offices)

No limits are applied to the size of eligible projects. Export Guarantees can also be issued to companies other than SMEs. In general, financing is not available for exports to subsidiaries or associated companies. However, if the exporter is a domestic parent company and the end client is a buyer outside the Group, exports may also take place via a subsidiary or an associated company.

No restrictions are placed on the business sector in export projects.

Loans and guarantees granted by Finnvera are considered to include State aid if the price an enterprise pays for the financing is lower than the reference price determined by the EU Commission. Owing to international agreements, however, export guarantees must always be priced so that they do not include aid.

Applications for pre- or post-delivery financing of exports or bonds associated with delivery contracts, i.e. applications for Export Guarantees, are processed by Finnvera’s Regional Offices.

Brochure (PDF)