Customer financing

A Buyer’s credit is a loan by Erste Group to a foreign borrower for the purpose of financing Austrian export transactions. Thereby you increase your chances to finalize a contract, as you can offer your customer a comprehensive package of delivering goods in combination with financing advantages.

A Buyer’s Credit is concluded directly between Erste Group and a foreign contract party. Borrowers can be foreign companies, banks, states or municipalities. Buyer’s Credits are used to fund those foreign importers and borrowers that primarily want to purchase Austrian goods and services. In order to be financed, delivery and service transactions must have at least 25 % Austrian added-value.

Prerequisites:

• Underlying export transaction
• Tied usage of funds
• High volume transactions
• Austrian added-value
• For credit terms > 2 years in compliance with international guidelines (OECD-Consensus)
• advance and interim payment of at least 15%
• Terms and conditions of OeKB have to be taken into account
   

Your benefits:

• Direct settlement between the bank and the foreign borrower
• Liquidity for the exporter (cash transaction)
• Faster processing of the loan agreement through master agreements between Erste Group and foreign banks
• Long-term financing

Export Credit Agencies help protect against political and business risks. Oesterreichische Kontrollbank AG, called OeKB, is one example. They offer guarantees for Buyer’s Credits. A federal export guarantee G3 is needed for financing. This guarantee is for Erste Group. It can cover political risks fully and business risks up to 95%. The coverage depends on the country. You can also protect and finance production with a G1 export guarantee from OeKB. We also help if you need to issue guarantees or bonds. Examples are bid guarantees or advanced payment guarantees for Buyer’s Credits.