Concluding an export contract may require that the customer is provided with financing.  The customer may already request a financing offer during the bidding stage, which means that the ability to arrange the financing will give the exporter a competitive edge.

The buyer credit for a foreign customer is granted by a bank and Finnvera can share the risk with the bank by providing it with a buyer credit guarantee.  Thus, as the exporter contacts Finnvera, it should also start discussions with potential providers of financing.

Finnvera can, within the framework of the OECD export credit agreement, be a party to financing arrangements in buyer credits with a credit term of at least two years.  The buyer credit guarantee may also be used in short-term exports.  In such cases, a bill of exchange, a promissory note or other transferable debt instrument must be used as the payment instrument and the exports must be destined for non-EU countries or other countries outside the western industrialised world.

A letter of credit is a safe payment method in export trade.  Finnvera's letter of credit guarantee makes it easier for banks to confirm letters of credit issued by foreign banks.  The guarantee is provided to the bank confirming the letter of credit and it protects the bank against the political and commercial risks associated with the bank issuing the letter of credit. 

Read more about the products:

  • 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.

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  • Letter of Credit Guarantee

    A Letter of Credit Guarantee protects a bank from commercial and/or political and/or sovereign risks related to a confirmed Letter of Credit.

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  • Bank Risk Guarantee

    Bank Risk Guarantee protects the bank of a Finnish export company against risks involved in bank guarantees given to the exporter to secure payment of the purchase price.

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  • Bond Guarantee

    Under a Bond Guarantee, the exporter can insure a bid bond, an advance payment bond, a performance bond or a maintenance period bond issued by a bank in favour of a foreign buyer.

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  • Finance Guarantee

    A Finance Guarantee is a security for the credit institution granting an export credit to the exporter. It protects the bank from the risks relating to repayment of the credit.

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  • Raw Material Guarantee

    A Raw Material Guarantee (an import credit guarantee) may be issued as security for a loan granted to a foreign borrower in connection with a long-term contract with a Finnish buyer concerning import of raw materials (for example, concentrates for the basic metals industry).

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  • Bill of Exchange Guarantee

    Bill of Exchange Guarantee secures the lender against credit risks arising when the lender purchases a bill of exchange from the exporter. The guarantee helps the exporter to arrange bank financing for an export transaction by transferring risks associated with the buyer, the buyer’s bank or the buyer’s country to Finnvera.

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