Post-export financing

 

Do you expect payments from abroad, but needs money now? This product of financing will be useful for you.

Post-export financing ‐ financing provided against the pledge of property rights under export contracts (upon presentation of documents confirming shipment of goods) for a short period of time between delivery of the goods and obtaining payment from buyers.

Bank normally finances 50-90% (depending on debtor rating) of unpaid value of goods shipped.

Financing against documentary letter of credit, opened in favor of client (supplier) and advised via OTP Bank, is preferable. Funds are provided after shipment of goods (to be confirmed by documents) under export contract, and for the actual period of deferral of payment. Export proceeds are directed to the repayment of credit exposure.

Basic conditions of financing:

Minimum amount: UAH 4 000 000 (or equivalent in foreign currency).

Type of financing: revolving credit line or term loan.

Tenor of financing: usually up to 1 year (limits can be established for the period of up to 3 years).

Tenor of each tranche within the limit: 30-120 days (depending on the actual deferral of payment).

Currency of financing: financing is provided in the currency of export contract / currency of proceeds; standard currency ‐ USD, EUR.

Pricing:

Interest rate: for USD and EUR - LIBOR / EURIBOR + margin or current market rate.

Organization fee: defined individually.

Pricing depends on borrower’s financial standing, deal structure, collateral quality under the deal, financing period, current situation on monetary and financial markets.

Possible collateral (or its combination):

  • pledge of property rights under export contracts;
  • pledge of fixed assets (property complexes, real estate, equipment, vehicles, agricultural machinery);
  • pledge of goods in turnover;
  • pledge of property rights under deposits placed in OTP Bank;
  • credit repayment guarantee of other bank acceptable for OTP Bank;
  • financial surety (corporate guarantee) issued by a company acceptable for OTP bank;
  • financial surety of the borrower`s owners.