Supplier credit

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Learn in our short video how we can support you with an export guarantee for supplier credits within your export projects (only in German).

Your situation

You are an Austrian company that produces capital goods and/or complete plants, and would like to conclude a supply and service contract with an international client. As you want to offer your customer abroad a supplier credit with a longer credit period, you have to bear the non-payment risk for longer.

Your aim is to minimise this risk and at the same time cover your manufacturing period.

Our service: Your risks are covered for the entire lifetime of the project

The G1 guarantee is the tailor-made solution for your export transaction as a supplier of complete plants, a machine producer or a service provider, irrespective of whether you receive your payments right after delivery/service, or have agreed upon a longer credit period. With this guarantee for deliveries and services, over most of your political and commercial risks is covered – from the start of the project until payment has been made in full.

Secure supplier credit

A supplier credit inevitably involves risks, especially in difficult markets: the economic situation is often difficult to assess, and the political situation can also change within the life time of the project. For example, your customer abroad can go bankrupt or projects cannot be finished for political reasons.

With a G1 guarantee for deliveries and services you can cover yourself effectively against such risks: political risks are covered up to 100%, commercial risks up to 98%.

Here you can see a list of countries for which a G1 guarantee can be offered:

• COUNTRY INFORMATION

Calculable risk during the manufacturing period

Risk management is already an important part of the project during production.

The cancellation of a contract can represent a serious threat, especially with long manufacturing periods or when producing special products. When exporting, the manufacturing risk should be calculable and not limit your liquidity, regardless of whether you are a niche provider, an aspiring medium-sized company, or an internationally active group.

Here you can find more information on financing during the manufacturing phase on this page:

• Production financing

How the G1 guarantee covers your export transaction

OeKB covers your delivery and service contract with a G1 guarantee on behalf of the Republic of Austria.

Alternatives to the supplier credit with combined guarantees

You can transfer your non-payment risk to your bank in order to remain competitive without credit risks and liquidity restrictions. Consequently, we also offer the G1 guarantee in combination with other guarantees in order to cover non-payment risks. The benefits of our combined product are that you have comprehensive coverage with only one policy, reduce your administrative burden, and increase your liquidity.

Buyer credit with G1G3

If your project is financed with a buyer credit for your customer abroad or their bank, the combined G1G3 guarantee provides optimal coverage of commercial and political risks. As a result, your manufacturing risk and your bank’s non-payment risk are covered, and you can benefit from financing for the entire lifetime of the project.

The combined G1G3 guarantee covers you and your bank right up to the last repayment.

Here you can find more information on the G3 guarantee for buyer credit and letter of credit confirmations.

• Buyer credit
• Covering letter of credit confirmations

Your bank’s purchase of account receivables with a G1G9 guarantee

If your bank purchases your accounts receivable to be paid by your customer abroad, we offer cover for the risk of non-payment of the accounts receivable (G9). The combined G1G9 guarantee covers both your manufacturing risk and your bank’s non-payment risk, and provides financing for the entire lifetime of the project.

With the combined G1G9 guarantee, the manufacturing and non-payment risks of export transactions involving the sale of receivables are covered.

Here you can find more information on the guarantee for the acquisition of accounts receivable (G9).

• Sale of receivables

Flexible even with indirect deliveries and services

You are a sub-contractor, for example, for a German general contractor on a project in Russia and have concluded an export contract with your German business partner. Payment is effected by the general contractor, but only after the Russian customer has paid (i.e. an “If and when” agreement). You are now indirectly exposed to risk in Russia, without having a direct payment claim.

In this case, we can offer a G2 guarantee to cover the commercial and political risks from the end customer's country.

Fact Sheet on indirect deliveries and services

Covering purchases in Austria

You are a foreign exporter that buys products from Austria and sells them on to third countries, in combination with your own products and services or not, and consequently bear the non-payment risk for the whole order. The G2 guarantee is also well-suited for this purpose.

The costs

Interest rates for individual financing

We offer very attractive financing instruments through domestic and foreign commercial banks based on your coverage. The interest rates depend on the financing requirements.

We offer financing in Euro and foreign currencies.

Here you can find an overview of current interest rates.

• Interest rates

The interest rate is based on the planned duration and structure of the credit disbursements and repayments, and can be calculated easily using the OeKB Loan Pricer on my.oekb.

• OeKB Loan Pricer