The export of major goods and services, such as capital equipment or project sales, may be tricky. For suppliers, the up-front cost of the manufacture, shipping and delivery of such goods is substantial, and whereas a seller typically wants early payment, the buyer generally wants to delay payment as long as possible to maintain strong cash flows.
This dilemma may be solved via export finance, i.e. by financing either the supplier or the importer directly or via the importer’s bank. The provision of such financing is usually a compelling sales argument for the supplier when negotiating with the importer - in particular when exporting capital goods and services to emerging economies.
Danske Bank has years of experience in providing export finance support to the supplier as well as the importer. We work closely with both sides to structure the best solution, be it on the bank’s balance sheet or by using alternative funding.
Do you want to know more? Please reach out to your Relationship Manager.