Advantages for exporter
- Gains competitive edge by offering financing to prospective buyers
- Receives cash payment upon shipment or commissioning
- Does not tie up assets
- Avoids credit, currency and interest-rate risks in the settlement period
- Does not need to use administrative resources to collect the debt
| | Advantages for importer
- Can use long-term financing to match expected revenues with expenditures, making cash flow more efficient
- Obtain financing that is less expensive than local financing which may be subject to restrictions
- Obtain additional savings on financing as exporters can use private insurance programmes which can make financing available at competitive rates
- Can obtain fixed-rate financing and be certain of the size of future payments
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