Buyer’s credit

What is a buyer’s credit?

A buyer’s credit is a financing alternative for cross-border transactions. It is tied to the supply contract between Plasser & Theurer (the exporter) and the customer (the importer). We act as a financial intermediary.

The terms of a buyer’s credit are set forth either in an individual loan agreement or as part of an existing framework agreement. There are two options for concluding an individual loan agreement: either it is between Plasser & Theurer’s bank and the importer directly or between Plasser & Theurer’s bank and the importer’s bank. In the case of an existing framework agreement, the two banks conclude the loan agreement.

Upon confirmation that the machines and services have been delivered in accordance with the agreement, the buyer's credit is disbursed directly to Plasser & Theurer. Risks in connection with the supply contract and the loan agreement are covered by a guarantee issued by an Export Credit Agency (ECA) in the exporter’s country. The ECA in Austria is the Oesterreichische Kontrollbank AG. This guarantee is a prerequisite for any buyer’s credit.

Depending on the structure of the project (volume, repayment period, etc.) as well as the creditworthiness of the parties to the agreement (customer, bank, countries), additional securities may be required. A state guarantee issued by the Ministry of Finance in the customer’s country is one example.

Terms of financing

  • Volume
    up to 85 % of the value of the supply contract, with a credit volume starting from approx. EUR 5 million (ECA covered). Advance and/or interim payment optionally financed by the bank issuing the buyer's credit, corporate risk with no ECA coverage.
  • Repayment period
    up to 14 years
  • Costs
    floating (EURIBOR) or fixed interest rate plus the margin of the bank issuing the buyer’s credit, the arrangement fee/management fee, commitment fee, and the ECA premium

The actual terms of financing depend on the structure of the project and the creditworthiness of the parties to the agreement.

Your benefits

  • Access to an international banking network
  • Financing solutions with attractive interest rates: they are either floating EURIBOR-based rates or fixed interest rates
  • You can pay for your Plasser & Theurer products at a later date to improve your liquidity as the importer
  • Financing of high volumes possible
  • Our seasoned specialists provide support and guidance during the entire financing process