Buyer Credit Cover

Abstract

In the context of the ECA cover, buyer credit is a loan granted by a bank or another lender to a foreign buyer for the purchase of goods or services from an exporter. Unlike the supplier credit, where an exporter and foreign buyer agree on payment of the contractual price on credit terms, the buyer credit means that the foreign buyer borrows money from the bank to pay the exporter on delivery. The term ‘buyer credit’ is different from’ supplier credit’ because the exporter (supplier) is not a party to the loan contract between the bank and the foreign buyer.