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Buyer Credit Cover

In: Export Credit Insurance and Guarantees

Author

Listed:
  • Zlatko Salcic

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.

Suggested Citation

  • Zlatko Salcic, 2014. "Buyer Credit Cover," Palgrave Macmillan Books, in: Export Credit Insurance and Guarantees, chapter 8, pages 77-87, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-36681-8_8
    DOI: 10.1057/9781137366818_8
    as

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