export credit
Noun: A financial arrangement or facility extended by a bank or financial institution in an exporter's country to an importer (or the importer's bank) to finance the purchase of goods or services from that exporter. It is a credit opened specifically to facilitate and secure payment in an international trade transaction.
This term is used primarily in the contexts of international trade, banking, and finance. It refers to the credit instrument or facility itself, not the act of providing it.
Examples: * The manufacturer secured an export credit to guarantee payment for the machinery shipped overseas. * Obtaining favorable export credit terms was essential for closing the international deal. * The bank specializes in providing export credit to support local businesses selling abroad.
- Export Credit Agency (ECA): A government or quasi-government institution that provides export credit guarantees, insurance, and sometimes direct financing to support domestic companies in international markets.
- The company insured its receivable through the national Export Credit Agency.
- Buyer's Credit: A type of export credit where the loan is provided directly to the foreign importer (the buyer) to pay the exporter.
- The project was financed via a buyer's credit arrangement.
- Supplier's Credit: A type of export credit where the exporter extends credit to the importer, and then the exporter's bank provides financing against this trade receivable.
- They offered supplier's credit with a 180-day payment term.
- Export Financing (n): A broader term encompassing various methods, including export credits, used to finance export transactions.
- Trade Credit (n): Credit extended by a seller to a buyer for the purchase of goods or services. Export credit is a specific form of international trade credit.
- Letter of Credit (L/C) (n): A common instrument used in conjunction with export credits, where a bank guarantees payment to the exporter upon presentation of specified documents.
- Trade finance facility
- Export loan
- International trade credit
- To arrange/secure/obtain export credit: The process of setting up this financial facility.
- Their finance team worked to secure export credit for the new contract.
- Export credit terms: The specific conditions (interest rate, period, fees) of the credit.
- Negotiating favorable export credit terms can improve competitiveness.
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a credit opened by an importer with a bank in an exporter's country to finance an export operation
