Export credit
International buyer credit - mechanisms and legal structure
By Charlotte GAUCHON11 April 2025In international trade, financing exports is often a major challenge. Among the solutions available, buyer credit has emerged as a sophisticated instrument for facilitating international transactions while effectively spreading risk. This triangular mechanism deserves a closer look to understand its legal subtleties. Specific features and advantages of buyer credit Buyer credit differs from other financing mechanisms in its particular structure. Unlike supplier credit, in which the exporter itself grants credit to its foreign buyer and then mobilises its debt with the banking system, buyer credit involves a bank or credit institution in the exporting country making a direct commitment to the foreign buyer. As Gautier Bourdeaux points out in the JurisClasseur Droit bancaire et financier: "In buyer credit, a bank or public export credit agency in the exporting country undertakes to make a loan directly to the foreign buyer.
Understanding supplier credit: pre-financing and mobilisation
Export credit, Credit and consumer lawExport operations require considerable financial resources. Exporters often have to incur significant expenses long before they receive payment from their foreign customers. That's why the banking system has developed several financing mechanisms tailored to these specific needs. Pre-financing loans: financing the period...Public financial support for export credits: a changing system
Export credit, Credit and consumer lawIn the international trade arena, public financial support for export credits is a powerful economic lever. Unknown to the general public but essential for exporting companies, this mechanism has undergone profound changes in recent decades. Here we take a look at this strategic mechanism and its legal implications for exporters.International agreements governing export credits
Export credit, Credit and consumer lawAn exporter who offers advantageous financing often wins the contract. For a long time, this logic led governments to subsidise their exporters with subsidised loans. The result was costly and sterile competition between economic powers. The OECD Arrangement: origin and legal nature The OECD Arrangement on Export Credits...Export credit insurance: an essential lever
Export credit, Credit and consumer lawIn the arena of international trade, every transaction is accompanied by a multitude of risks. The remoteness of trading partners, political instability in certain regions, currency volatility and the potential insolvency of debtors are major obstacles for exporting companies. These uncertainties can turn a promising business opportunity into a financial nightmare. Credit insurance...Export credits and European law: between prohibition and harmonisation
Export credit, Credit and consumer lawExport credits are an essential tool in international trade. In the European Union, they are governed by a complex legal framework, between competition law and the common commercial policy. Understanding these rules is crucial for exporting companies and their banks. State aid prohibited in the EU is...Bank round tables in international loans: mechanisms and precautions
Export credit, Credit and consumer lawThe financing of major international projects often exceeds the capacity of a single banking institution. In such cases, it is essential to set up a banking "pool" to spread the risks and raise sufficient capital. The need for banking pools Against a backdrop of international competition...Export credits: issues and general framework
Export credit, Credit and consumer lawhtml In a context of fierce international competition, companies that export need appropriate financial solutions. Export credits are an essential lever for conquering foreign markets. They can be used to finance international commercial operations and secure transactions. Definition and economic context Export credits...
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