export credits

How do Export Credits Work?

Export credits typically involve a tripartite agreement between the exporter, the importer, and the financial institution. Here’s a step-by-step overview:
The exporter and importer agree on the terms of the sale.
The exporter applies for export credit from a financial institution or government entity.
The financial institution assesses the credit risk and approves the credit.
The exporter ships the goods or provides the services to the importer.
The financial institution disburses the funds to the exporter.
The importer pays back the financial institution as per the agreed credit terms.

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