An export enterprise is exposed to both commercial risks arising from the buyer and political risks arising from the buyer’s country. However, it may be easier to reach a deal when the seller has the option of extending the credit term beyond the customary limit; therefore it pays for the seller to prepare for risks, for instance, by applying for Finnvera’s export credit guarantee for the transaction.
The granting and pricing of export credit guarantees depends largely on the creditworthiness of the buyer and the buyer’s country. For assessing creditworthiness, a country risk category is determined for each country.
It pays to apply for an export credit guarantee even before the transaction is concluded, and in any case before deliveries start.