KredEx will start to finance export transactions
KredEx will start issuing loans to companies also wishing to offer financing under large scale export transactions of goods produced in Estonia.
The export loan enables companies to offer a long payment term to a foreign buyer, and finance the production of the goods sold to a foreign buyer, if necessary. A prerequisite for issuing the loan is insurance of credit and political risk related to the buyer.
According to Andrus Treier, manager of KredEx, obtaining of long-term credit for international transactions is of high importance. “Often, appropriate payment terms are the prerequisite for participation in a large scale foreign procurement. The financing scheme where the exporting country organises financing for a buyer located in another country is used globally. For instance, factory equipment is bought from an exporter, and the transaction is financed by long-term loans from the exporting country. The loan of KredEx enables Estonian entrepreneurs to offer terms comparable to those of the competitors in other countries.”
The export loan can be obtained for financing of export transactions with a payment term of at least two years. The loan amount is generally up to 3 million euros per foreign buyer, and the loan period is from 2 to 10 years.
To apply for the export loan it is necessary to contact KredEx. More details regarding the loan can be obtained from the KredEx web page and the KredEx customer account managers.