Pre-export financing
The exporter is provided with financing at a reduced rate of interest for the replenishment of working capital to produce exported goods, works/services
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The exporter and the foreign buyer conclude a contract on the terms of deferred payment;
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If the exporter needs insurance of the export contract, the exporter and ECA conclude an Insurance Agreement (export credit insurance/short-term receivables insurance);
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The exporter applies to the bank for financing;
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ECA places a stipulated bank deposit;
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The bank provides a loan to the exporter to replenish working capital;
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The exporter prepares a batch of goods or works/services and delivers it to the buyer;
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The exporter pays an insurance premium if the exporter needs to insure the export contract;
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After the contract is fulfilled, the exporter repays the loan;
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If the foreign buyer fails to fulfill their obligations, ECA will reimburse the exporter's losses (if the export contract is insured).
- Obtaining financing for the entire production cycle of export goods on favorable terms;
- Competitive advantage in foreign markets, which consists in the possibility of granting a deferred payment under an export contract;
- Protection from political risks;
- Minimization of losses in case of non-fulfillment of financial obligations by the Importer;
- Increasing the volume and expanding the geography of exports due to favorable conditions for foreign partners.
