Finnvera's Direct Export Credit Facilitates Nokia's Deliveries to Telekom Srbija – A Financing Tool Also Suitable for Large Corporations

The direct export credit instrument was originally introduced by Finnvera and Finnish Export Credit Ltd to improve access to financing and support the internationalization of Finnish SMEs. However, the Nokia-Telekom Srbija transaction demonstrates that the product is also well-suited for larger companies, particularly for export deals valued under €20 million. In recent years, commercial banks have increasingly focused on larger transactions, making it more difficult to secure buyer financing for smaller-scale exports. 

According to Nokia's Silvia Braucher, "The access and usage of this product was very easy, and implementation was quick and without extra efforts compared to 'normal' ECA loans." 

What types of transactions is Finnvera's direct loan product useful for? 

"Customers looking for a fast and straightforward solution, who prefer vendor financing over traditional bank financing, and who value working with a single party - in this case, Finnvera - will find this product easier and more efficient to implement than a supplier credit covered by an ECA. lt is also ideal for customers with smaller financing needs that commercial banks may not accommodate due to minimum volume requirements," says Silvia Braucher, responsible for customer financing at Nokia. 

The direct loan from Finnvera also aligned well with the buyer's preferences. 

Export Credit Enhances Opportunities for Smaller Export Projects and Companies

Finnvera's export credit is a loan granted to a foreign buyer of Finnish capital goods - such as machinery, equipment, or production facilities - who is typically also the end user. The Finnish exporter applies for the loan on behalf of the buyer. Similar export credit schemes for smaller transactions are also offered by many other Export Credit Agencies globally. 

''Arranging buyer financing for transactions of this size has been challenging. Direct export credit ensures a level playing field for Finnish exporters, enabling them to compete on equal terms with companies from other countries. lt's essential that we can offer the same financing tools as our international counterparts," says Aleksi Laaksonen, Senior Adviser at Finnvera. 

When an export deal involves a repayment period of over two years and the buyer is exploring financing options, export credit should be considered. Even if local financing is available, the buyer may wish to diversify its funding sources through export credit. 

We encourage exporters to contact us early in the process. We're happy to assist and can join discussions with the buyer from the outset. Through export credit, even smaller exporters can benefit from Finnvera's extensive experience in export financing and help arrange funding for the buyer.