{"id":1939,"date":"2024-05-15T22:07:39","date_gmt":"2024-05-15T20:07:39","guid":{"rendered":"https:\/\/uat.exim.splendex.dev\/?page_id=1939"},"modified":"2024-06-03T22:19:31","modified_gmt":"2024-06-03T20:19:31","slug":"buyer-credit-discounting-facilities","status":"publish","type":"page","link":"https:\/\/exim.splendex.dev\/en\/buyer-credit-discounting-facilities\/","title":{"rendered":"Buyer credit, discounting facilities"},"content":{"rendered":"\n
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Buyer credit, discounting facilities<\/h1>\n
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Financing with favorable conditions for Hungarian exporters and their foreign buyers.<\/p>\n <\/div>\n \n \n \n <\/div>\n\n \n <\/div>\n\n \n <\/div>\n\n \n<\/section>\n\n\n\n

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\n OUR FINANCING SOLUTIONS <\/h2>\n
\n \n Buyer credit <\/a>\n \n Project-risk buyer credit <\/a>\n \n Interbank buyer credit <\/a>\n \n Forfaiting, short-term purchase of receivables <\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n\n
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Buyer credit<\/h2>\n <\/i>\n <\/div>\n\n
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The classic buyer credit facility has been applied is order to finance the purchases of goods and\/or services supplied under a commercial contract concluded between the Hungarian exporter and a foreign buyer, and is typically secured by MEHIB insurance policy (type V).<\/p>\n <\/div>\n

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CREDIT AMOUNT<\/h3>\n

Typically a minimum of EUR 1 million. In transactions exceeding EUR 20 million, Eximbank usually provides the credit in a co-financing arrangement with the involvement of commercial bank(s).<\/p>\n

CURRENCY<\/h3>\n

EUR or USD<\/p>\n

TENOR<\/h3>\n

Depending on the terms and conditions of the related commercial agreement, and determined based on the rules of the OECD Arrangement. Tenor of less than two years is principally available for financing agricultural or relatively small-value manufacturing industry export transactions.<\/p>\n

INTEREST BASE<\/h3>\n

Fixed at CIRR (only in the case of tenor over two years), or floating, based on EURIBOR or CME Term SOFR in case of USD financing.<\/p>\n

THE EXTENT OF FINANCING<\/h3>\n

In the case of financing facilities offered with a tenor exceeding two years at fixed CIRR interest, under the OECD Arrangement a maximum of 85% of the foreign trade\/general contracting agreement may be financed. A minimum 15% advance must be paid by the buyer at the start of performance. Local costs may \u2013 subject to individual appraisal \u2013 also be financed in part.<\/p>\n

CERTIFICATE OF ORIGIN<\/h3>\n

For export transactions financed or guaranteed by Eximbank it is necessary to certify the Hungarian origin of the product and\/or services constituting the object of the transaction.<\/p>\n <\/div>\n \n\n <\/div>\n

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direct credit application
at exim hungary<\/h3>\n\n product description<\/a>\n
\n \n \n\n Documents related to credit application <\/a>\n\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n\n
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Project-risk buyer credit<\/h2>\n <\/i>\n <\/div>\n\n
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Eximbank undertakes the provision of buyer\u2019s credit with project risk on the basis of an individual appraisal. The purpose of the facility is, with the financing package offered in relation to main contractor\u2019s agreements concluded between Hungarian main contractors and foreign procurers, to improve the competitiveness of Hungarian main contractors and help them to win orders for the implementation of complex projects in foreign markets.<\/p>\n

As a part of the facility, which is \u00a0covered by MEHIB insurance (Facility V), Eximbank provides funds to the project company established by the foreign partner to implement the investment, for the fulfilment of the payment obligation arising in relation to a project implemented abroad by a Hungarian main contractor. The credit is repaid out of the income from the completed investment.<\/p>\n <\/div>\n

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PREFERRED TRANSACTIONS AND FOREIGN MARKETS<\/h3>\n

Eximbank typically participates in the financing of transactions where both the Hungarian main contractor and the foreign partner (the owner of the foreign project company) have the financial background and industry experience necessary for the successful implementation of the project. An important prerequisite is that the project should have a stable cash-flow generation capacity that can be forecast for the tenor of the loan, and which derives from a small number of suitably creditworthy project beneficiaries. Eximbank makes its financing decision \u2013 with the involvement of MEHIB and independent consultants \u2013 based on an assessment of the risks of the project\u2019s implementation and operation, and the extent to which the projected cash flow (financial model) serving as the source of repayment of the credit is substantiated.<\/p>\n <\/div>\n

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CREDIT AMOUNT<\/h3>\n

Owing to the complexity and high transaction costs of cross-border project financing transactions, Eximbank recommends the use of this facility in cases where there is a need for bank financing in excess of EUR 5 million or the equivalent USD amount. Where large-volume projects are concerned, Eximbank participates in a co-financing arrangement, in partnership with domestic and foreign commercial banks.<\/p>\n <\/div>\n

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CURRENCY<\/h3>\n

EUR OR USD.<\/p>\n

TENOR<\/h3>\n

In every case, the tenor is determined individually taking into consideration the special features of the given project, based on an evaluation of the financial model.<\/p>\n

PRICING<\/h3>\n

Eximbank offers this facility at fixed interest (CIRR).<\/p>\n

EXTENT OF FINANCING<\/h3>\n

In the case of financing facilities offered with a tenor exceeding two years at fixed CIRR interest, under the OECD Arrangement a maximum of 85% of the foreign trade\/general contracting agreement may be financed. A minimum 15% advance must be paid by the buyer at the start of performance. Local costs may \u2013 subject to individual appraisal \u2013 also be financed in part.<\/p>\n

CERTIFICATE OF ORIGIN<\/h3>\n

It is necessary to certify the Hungarian origin of the product and\/or services constituting the object of the transaction.<\/p>\n <\/div>\n \n\n <\/div>\n

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Interbank buyer credit<\/h2>\n <\/i>\n <\/div>\n\n
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Interbank Buyer Credit is granted for the financing, indirectly through the buyer\u2019s bank, of the purchase of goods and\/or services supplied under a commercial contract concluded between the Hungarian exporter and the foreign buyer, and is usually secured by MEHIB insurance policy (type V). In this financing structure, Eximbank provides credit to the buyer\u2019s bank, which lends it to the buyer.<\/p>\n <\/div>\n

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CREDIT AMOUNT<\/h3>\n

Typically a minimum of EUR 1 million. In transactions exceeding EUR 20 million, Eximbank usually provides the credit in a co-financing arrangement with the involvement of commercial bank(s).<\/p>\n

CURRENCY<\/h3>\n

EUR or USD<\/p>\n

TENOR<\/h3>\n

Depending on the terms and conditions of the related commercial agreement, and determined based on the rules of the OECD Arrangement.<\/p>\n

INTEREST BASE<\/h3>\n

Fixed at CIRR.<\/p>\n

THE EXTENT OF FINANCING<\/h3>\n

In the case of financing facilities offered with a tenor exceeding two years at fixed CIRR interest, under the OECD Arrangement a maximum of 85% of the foreign trade\/general contracting agreement may be financed. A minimum 15% advance must be paid by the buyer at the start of performance. Local costs may \u2013 subject to individual appraisal \u2013 also be financed in part.<\/p>\n

CERTIFICATE OF ORIGIN<\/h3>\n

Certification of the Hungarian origin of the product and\/or services constituting the object of the transaction is required.<\/p>\n <\/div>\n \n\n <\/div>\n

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Direct credit application
at exim hungary<\/h3>\n\n product description<\/a>\n
\n \n \n\n Documents related to credit application <\/a>\n\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n\n
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Forfaiting, short-term purchase of receivables<\/h2>\n <\/i>\n <\/div>\n\n
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In addition to the traditional export credit agency-financed facilities, as an alternative solution, Eximbank also offers forfaiting to its customers. Forfaiting means the purchase, without recourse, of bank-guaranteed receivables from export sales, transforming a deferred-payment transaction into a prompt-payment one, and thus relieving the exporter from the<\/p>\n