Pre-export finance is a service from Erste Group. It provides secured working capital finance to exporters. Exporters must show they can produce and deliver goods or commodities.
Each transaction is unique. It is customized to meet your needs and legal requirements. Erste Group will do detailed checks before offering the finance.
You can use the loan for:
- Buying raw materials
- Storing raw materials
- Processing raw materials
- Delivering finished products
You will repay the loan with money from selling the finished products. These sales must follow contracts that the lender accepts.
The sales proceeds will go into a designated bank account. This money will pay the loan interest and repay the loan. Erste Group will secure the loan by taking rights to the sales contracts and the special bank account.
The benefits to you:
- Committed financing, the structure of which is customised to the needs of the client
- Provides you with access to funding outside of normal bank lines provided by local banks
- Offers the possibility of medium term funding at a lower cost of funding compared to other available sources of debt
- You are able to use unencumbered export sales as security for loan
- Establishes for you a track-record of borrowing from international banks