The Supplier Credit is granted by a French supplier to its foreign buyer in order to finance a purchase of equipment, infrastructures, and related services
The Supplier Credit is granted by a French supplier to its foreign buyer in order to finance a purchase of equipments, infrastructures, and related services. The supplier Credit is then assigned to Bpifrance Financement (without recourse)
The amount of the credit is based on the goods and services purchased through the commercial contract. Additionally, the funding envelope can include the Bpifrance Assurance Export insurance premium (Bpifrance Assurance Export acting on behalf of the French State). The Supplier Credit, granted by the exporter to his buyer, is assigned to Bpifrance Financement upon delivery or acceptance of the goods and/or services concerned.
• Funded portion
Maximum 85% of the “eligible portion” of the commercial contract. The repatriable portion includes the French content (part of the equipment produced or assembled in France) together with the foreign content.
A local portion of the contract can be included for a value amounting up to 30% of the value of the “eligible portion”.
Within the “eligible portion” of the commercial contract, the foreign portion (items purchased outside of France) cannot exceed :
– 80% for exporters with a yearly turnover inferior or equal to EUR 150m (social statements)
– 50% for exporters with a yearly turnover exceeding EUR 150m
The commercial contract must require a minimum down payment of 15% of the “eligible portion”.
• Amount of the credit
Minimum EUR 1M, maximum EUR 25M
3 to 7 years, depending on the type of financed goods and the country of destination, starting upon delivery or provisional acceptance.
• Repayment period
Principal : consecutive and equal, first repayment date falling 6 months after the starting point of credit
Half-yearly in arrears
• Financial terms
Fixed rate : Subject to current pricing conditions (depending on the project, the exporter may request for the CIRR to be implemented).
Floating rate : indexed on 6 months Euribor spot rate (half-yearly installments)
– Arrangement Fee : Flat, calculated on the total amount of credit.
– Commitment Fee : Per annum, calculated on the undrawn portion of the credit, starting from the signing of the assignment agreement until the release of the funds.
– Legal and administration costs incurred by the borrower
• Credit-insurance and guarantees
The 100% insurance cover of Bpifrance Assurance Export is mandatory and can be complemented if needed with guarantees and securities.
Who is it for?
French exporting companies looking to offer financing solutions to their foreign buyers; and Foreign entities looking to finance Export contracts entered into with French suppliers.
How to benefit from this product or activity?
You may benefit from this product if your Supplier’s Credits are eligible for French Export Credit Agency cover.
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