Business Banking

Export financing in complex transactions

Discount Bank offers various options for financing exports in complex transactions

Working capital financing - discounting of export invoices

Receive a cash payment for part of the invoice amount, net of interest and fees. The financing is for a short term – up to one year.

The financing backed in part by credit insurance companies that insure the bank and the exporter against the risk of non-receipt of proceeds from the exporter’s customers.

The insurance is for commercial and political risks, and not due to a commercial dispute.


Buyers credit / foreign receivables

This is proposed as a solution to bridge the timing gaps related to the provision of supplier credit granted by the exporter to his clients.

This credit is backed in part by credit insurance companies and is designed to protect against non-payment risks as a result of political risks (the inability or reluctance of a country to pay) or of commercial risks (inability of the importer to pay).


Discount of notes

In cases where the exporter receives promissory notes from the buyer abroad for payments with deferred repayment as backup to secure payment for the goods supplied.

Promissory notes are negotiable documents separate from the commercial transaction for which they were granted.

The exporter can contact us and receive bridge financing through discounting of these notes. In this way, the exporter receives immediate payment, while the bank receives the funds in installments as agreed between the buyer and the exporter.

The bank insures the transaction with credit insurance companies.


Supplier Credit

Credit granted by the exporter, financed by Discount Bank, to the buyer abroad.

This credit is designed for exporters whose buyers pay them in periodic installments, over a period longer than a year.

The credit is backed in part by an insurance company that covers the bank against the risk of a buyer’s failure to settle his obligations to repay the credit he received from the insured.


Inter-bank credit

In cases where the buyer is a private or public company without a proven strong financial capability, it is not possible to obtain insurance coverage for “buyers credit” because the insurance companies are unable to assess the risk of the buyer.

In these cases, we turn to a local bank in the buyer’s country (who can assess the risk of the buyer and obtain collateral) and provide the financing to that bank.

At the same time, the local bank will grant the buyer a loan.

Discount Bank insures part of the credit line with a credit insurance company.

The insurance company covers the non-payment of the bank in the buyer’s country.

Discount Bank has framework agreements with government banks in various countries (China, Vietnam, etc.).