1. Finnvera solutions for export transactions
Jari Ihamäki
Finance Manager – Growth and Internationalisation team

2. Finnvera supplements the financial market and helps Finns to create something new.

3. Benefits of export credit guarantees
To exporters
To borrowers
To lenders
Payment is received on cash terms, protects against credit risks
Enables the availability of long-term financing
Protects against credit risks

4. Risks covered Political risk Commercial risk
Restrictions on currency transfers or currency change
Insolvency of a State
Expropriations
War, insurrection or some other state of emergency
Commercial risk
The buyer’s inability or unwillingness to pay

5. Map of country risk categories
Country classification
0. Advanced economy
1. Very low risks
2. Low risks
3. Relatively low risks
4. Intermediate risks
5. Relatively high risks
6. High risks
7. Very high risks
Country policies
No restrictions
Flexible country policy
Restrictive country policy
Country policy defined separately

6. Exporter Buyer Finnvera Exporter’s bank
Case 1. Arranging payment period for customer - Export Receivables Guarantee
Selling leather made accessories to Saudi-Arabia – contract size 15 t€ per delivery
Payment term invoice with 3 months payment period
Continuous credit limit – delivering every 3-4 months
Exporter
Invoice
Buyer
Payment term 90 days
Export Receivables
Guarantee
(Covers 90 % of invoice)
discounting of invoices (factoring)
Payment
Finnvera
Transfer of Rights
Exporter’s bank

7. Confirming (Finnish) bank Issuing (foreign) bank
Case 2. - Letter of Credit (L/C) Guarantee – with 1 year payment term
Selling machines and equipment to Iran – contract value 1,5 m€
Payment term Letter of Credit with 1 year payment period
Exporter
Delivery contract
Buyer
Irrevocable L/C as the term of payment
Discounting the L/C – instant payment for exporter
Request to issue an L/C -
Payment term 360 days
Confirming (Finnish) bank
Issuing (foreign) bank
Request to
confirm an L/C
Letter of Credit Guarantee
Finnvera

8. With an idea worth pursuing, turn to us for financing. Thank You.