The basics of extending credit to buyers

Published: 05 Aug 2009 17:57:03 PST

Frequently, buyers ask for extended credit terms and/or financing to purchase your goods, but few exporters can manage the cash flow issues or commercial risks without assistance caused by these types of contracts. This called "term financing." Buyer credit programs typically provide loan guarantees to commercial lenders. This kind of program benefits all the parties involved:

Exporter benefits: paid cash on delivery and acceptance of the product or service
Buyer benefits: extended credit terms
Lender benefits: guarantees, many backed by the government, for full repayment of the loan