Buyer Credit
You are negotiating a commercial export of capital goods contract with a foreign buyer. You want to be paid in full, but your buyer asks you for a payment period over several years. Thanks to the Buyer Credit Solution, Crédit Agricole group finances your foreign buyer. In addition, the buyer credit, which benefits from the coverage of a public insurer (Bpifrance Assurance Export in France), must comply with the rules enacted by the OECD Export Credits Arrangement.
Basic principles
This is credit granted directly by a French bank to a foreign buyer or another entity borrowing on its behalf (parent company, bank, etc.) to finance an export contract, allowing the exporting company to be paid immediately.
This credit must be insured by Bpifrance Assurance Export* (formerly Coface), any other public credit insurance or a State funded entity, depending on the origin of the exported goods and complying with the rules of the OECD Export Credits Agreement on how to set it up:
- the financing percentage (85% maximum of the amount of the eligible part of the contract),
- the credit repayment period (from 3 to 10 years),
- the credit interest rate.
This insurance covers the bank for the following types of risk: business (default or insolvency of the debtor), political or catastrophic (general moratorium, occurrence outside France of a war, revolution or riot, natural disasters, etc.). The Bpifrance Assurance Export percentage of cover is 95%.
*Since 1 January 2017, our partner Bpifrance Assurance Export, subsidiary of Bpifrance SA, ensures the management of public export guarantees in the name, on behalf of and under the control of the State pursuant to art. L 432-2 of the Insurance Code.
Your needs
You are a company delivering export contracts for capital goods (from machine tools to power stations) eligible for loans with a repayment term of more than 3 years.
Benefits
For the exporter
- Lightening of the structure of its balance sheet: no additional indebtedness appears on the exporter's balance sheet,
- Security of payment: The exporter is totally free from credit risk (political and commercial risks). It is paid in cash as and when its services are performed,
- The service does not include any provisions for the exporter for risks or any increase for financial charges.
For the buyer
- the possibility of financing its investment at more favourable rates than those offrered in its country (cost - duration),
- the possibility of varying its sources of financing by not using the credit lines set up by its domestic banks,
- a longer financing term,
- the possibility of including credit insurance premiums in the financing.
And more
Crédit Agricole is a world leader in export financing.
Our network of experts is present in 18 countries. Our professionals have long-standing relationships with over 25 export credit agencies in exporting countries, as well as with importing and exporting customers. They have extensive experience developing tailored consulting and financing solutions around a wide range of projects in all sectors.
We can support the exporter very upstream by offering a financing proposal that can be included in the commercial offer.
We also support you for specific clauses of your offer and your commercial contract and in your dealings with Bpifrance Assurance Export and the relevant French authorities.
