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Supplier Credit Cover

In: Export Credit Insurance and Guarantees

Author

Listed:
  • Zlatko Salcic

Abstract

A supplier credit is an agreement in a commercial contract under which an exporter will supply goods or services to a foreign buyer on credit terms. Since the exporter is also called a supplier, the agreement is called the supplier credit in the ECA terminology. Payment on credit terms means the foreign buyer will pay either a single amount at a later date or make payments in several instalments on several future dates agreed between the parties. Since the foreign buyer is from another country this type of commercial contract includes export of goods or services from the exporter’s country and their import into the foreign buyer’s country. The export element in this contract is of significance for obtaining the ECA cover for the risk of non-payment of the credit by the foreign buyer. In the ECA context, the supplier in the supplier credit transaction is called the exporter, which could be a manufacturer of goods, a provider of services, or a trader or agent.

Suggested Citation

  • Zlatko Salcic, 2014. "Supplier Credit Cover," Palgrave Macmillan Books, in: Export Credit Insurance and Guarantees, chapter 5, pages 49-52, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-36681-8_5
    DOI: 10.1057/9781137366818_5
    as

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