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Tatra banka

10.12.2016 17:36

Export refinancing

By way of export refinancing you can obtain temporary funds required
for funding a large single commission.

  • provides temporary funds
  • foreign customer monitoring
  • professional consultancy
Advantages

Advantages

  • funds required for delivery completion available in advance 
  • foreign customer monitoring by the bank
  • monitoring of overall risk of the country of export
  • consultancy and general support from our professionals already during the contract drafting process for clients whose projects are refinanced regularly  
  • comprehensive coverage of the business transaction - contact with foreign banks - customers' banks, documentary Letters-of-Credit, bank guarantees, etc. 
Details

Details

Export refinancing or refinancing of projects in Slovakia represents the financing suitable for larger single contracts, especially when the client needs to bridge temporary increased need of capital required for the acquisition of material or raw material.

  • This is pre-delivery financing. It means that the bank provides a loan to the client subject to the existence of contracts with foreign partners (in the wording and with the terms and conditions acceptable for Tatra banka) and upon reviewing the contractual parties' creditworthiness.
  • This product enables the client to bridge liquidity problems during raw materials' purchase, manufacture, and export of finished products.
  • By refinancing, the client´s needs are bridged until the receipt of payment for the shipped goods.
  • This is a short-term loan which allows financing up to 70% of costs for contract performance in the currency required by the client.
  • The client repays the loan upon payment receipt from the customer.
  • Export refinancing or refinancing in the Slovak Republic requires:
    • a creditworthy customer
    • good payment or security instruments, such as documentary Letter-of-Credit or bank guarantee issued by an acceptable bank.

E.g. in refinancing under a documentary Letter-of-Credit, an exporter´s future export receivable is refinanced upon the issuance of the Letter-of-Credit by a foreign bank, prior to export and upon furnishing of the documents prescribed by the Letter-of-Credit.

Conditions

Conditions

Refinancing is suitable mainly for legal entities:

  • export firms (building and machinery firms, companies supplying large investment complexes)
  • companies performing business activities mostly on the basis of commissions
  • enterprises whose financial situation (or cash-flow balance and contract payment conditions) doesn't allow them to realise the commission from their own resources and payments from the customer