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 will be decided on a transaction basis and can be up to 95 % for commercial risks and 100 % for political risks.
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:
- EU countries except for Greece* (Austria, Bulgaria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom)
- Australia, Canada, Iceland, Japan, New Zealand, Norway, Switzerland, USA
*The EU Commission has granted a temporary exemption to provide short-term export credit guarantees for exports to Greece until 31 December 2019.
In the case of these so-called “marketable risk countries”, the EU rules on transactions with a risk period of under two years only apply to conventional credit insurance for covering buyer risks, not guarantees for bank risks. If the payment method is a letter of credit and the guarantee used is a Letter of Credit Guarantee or some other guarantee where the risk applies to a bank, Finnvera may, under the risk-sharing principle, consider granting a guarantee for said countries.