As an exporter of capital goods, you may often be asked about financing your deliveries. In our experience, many exporters don't want to provide such financing, probably because it can be difficult to assess the risks involved.
Negotiating advantage
If you do not offer financing, you may often lose the order. On the other hand, if you can accommodate your customer's request, you will be a strong position in the remaining negotiations.
How we can help
At Danske Bank we can help you structure the financing of your exports – often without your assuming any additional risks. Financing can be arranged through instruments that you may be familiar with, such as drafts and letters of credit, or through loan documents that we prepare.
Material you can use
To get the best possible agreement with your importer, see the detailed information in the Export Finance under Transaction Services.
Export credits
Sales of capital equipment and project-related goods and services on export markets often entail greater risks than sales on your domestic market. Foreign customers may not have either the ability or inclination to pay. Political unrest and exchange rate volatility can also reduce the likelihood of timely payment.
But precautionary measures are available. Many companies specialise in insuring businesses against losses on export markets. The Bank can also obtain a guarantee for financing for this type of export from government export credit agencies. Read more about export financing guarantees.