Buyer’s credit
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, such as Oesterreichische Kontrollbank AG (OeKB), provide guarantees to cover political and commercial risks associated with Buyer’s Credits. A federal export guarantee G3, issued in favour of Erste Group, will be the precondition for (re)financing. Depending on the country, it covers political risks up to 100% and commercial risks up to 95%. If necessary, you can protect and finance the production phase in your favour via a G1 export guarantee issued by OeKB.
We assist you as well in cases where you are asked to issue guarantees or bonds (e.g. bid guarantee, advanced payment guarantee, etc.) associated with Buyer’s Credits.
Product information
Buyer's Credit
Download Buyers credit (PDF · 639 KB)Soft Loans
So-called “Soft Loans” are available for selective recipient countries. This favourable form of financing enables funding of Austrian exports to developing and emerging markets which would otherwise be inconceivable under commercial financing. It is characterised by low interest rates, grace periods and long repayment periods. Soft Loans are particularly suited for the area of water treatment and sewage, health, education and infrastructure.
Your benefits:
- Particularly attractive financing for foreign borrowers
- Long-term loan
- Processed like a Buyer’s Credit
- 100 % secured and financed by G3 guarantee issued by OeKB
- Access to markets that would otherwise be inconceivable under commercial financing
Product information
Soft Loans
Download Soft Loans (PDF · 760 KB)