International financing

If your company imports, you can finance payments to foreign suppliers in full or in part. The duration is from the date of payment by the financial institution to the maturity of the agreed operation. 

This type of credit is made in euros or any currency with official quotation and can be made by resident or non-resident natural or legal persons.

Advantages for your company as an importer:

• Minimize financial costs and exchange rate risks. 
• Greater margin for negotiation, as you can offer your suppliers longer payment periods. 
• Gives you bargaining power to obtain better prices or discounts in the operations, as you can offer to pay in cash.

Advantages for your company as an exporter:

• Elimination of commercial, political and exchange rate risks when receiving cash.
• Normally the benchmark rate is the Euribor, although the Libor can also be applied for operations in other currencies.

Foreign exchange risk

If financing is carried out in euros, and you are an importer, you do not assume any exchange risk. If you assume it if it is carried out in foreign currencies, committing to repaying it, the equivalent of which you will not know until it matures. 

For operations with emerging economies, it is essential that you have the coverage of CESCE insurance, aimed designed for political and commercial risks. BBVA grants it directly to the foreign importer up to 85% of the total to be financed. In addition, for the remaining 15% not covered by CESCE, we can offer you financing through Accompanying Loans.

If your company is an exporter, you can apply for full or partial financing for your sales abroad: 

• Financing the manufacturing period from the time of receipt of the order until the delivery of the goods or service provision (pre-financing).
• With post-financing, if your company sells on credit, financing the deferred payment.

Advantages for your company as an exporter:

• Greater competitiveness by having financing, while minimizing financial costs and exchange risks arising from the transaction.
• Possibility of carrying out more sophisticated and higher risk operations that require guarantee from the credit granted.
• Liquidity in order to pursue your sales plans and manufacture orders or provide the services with the advance on export receivables.

Advantages for the importing customer

• By giving your company more financial flexibility, you can accept more beneficial terms for the foreign customer. Normally, the benchmark rate will be the EURIBOR, although the LIBOR can also be used for transactions in other currencies.

Foreign exchange risk

If the financing is carried out in the same currency as the commercial transaction, there is no exchange risk. There is if the currency is different.  

For transactions with emerging countries, it is essential to have CESCE insurance coverage for political and trade risks. BBVA grants the foreign importer up to 85% of the total amount to be financed directly. In addition, for the remaining 15% not covered by CESCE, we can offer you financing through Accompanying Loans.

We offer you the best financial service for foreign trade: Medium- and long-term export forfaiting. 
  
We take responsibility for buying in cash, and without any recourse against you, the accepted international payment documents (letters of credit, promissory notes, bills, guarantees, and in some cases invoices issued), when these are issued as a form of payment for your exporting. 
  
Thus, as an exporter, you finance your importing customers without taking on their debt, while eliminating your commercial and political risk, and you receive payment in cash for the export product at the time of the transfer. 

Advantages for your company (as an exporter):

• Obtain immediate liquidity.
• Finance your client without consuming your banking risk limits.
• Eliminate all risks of the transaction (commercial, political and exchange), as they are taken on without resource by BBVA.
• Improve the structure of your balance sheet by transforming realizable into available assets.
• Know your financial costs from the beginning in order to be able to allocate them to the transaction.
• Simplify administrative tasks of accounts receivable for the transaction. Simplify the procedure.

We finance the projects you carry out in emerging countries, with the main guarantee being the cash flow of the operation and the assets of the project itself. 

Financing for these projects requires a high degree of sophistication in terms of the financial products employed, which must be custom-designed for each project. For this reason, we have a highly specialized team in Spain and in our international network (Europe, Asia and America) that will help and advise you at all times.

This type of financing is applied to concessions contracts known as BOT Project Finance. (Build Operate Transfer), B.L.T. ( Build Read Transfer), established via trusts or via the cession of collection rights. They entail political-administrative, construction, operative, demand and financial risks.

We finance investments made by Spanish companies for creation of companies, subsidiaries, or permanent establishments in emerging-market countries, or for their full or partial acquisition, purchase of shares for capital increases, or other asset contributions. 

Features:

• The investing company must have a majority of Spanish capital.
• The contracts, agreements, commitments and administrative concessions shall be subject to this financing, in which the sole or majority holder is a Spanish company.
• Only new investments or increases in existing investments may be financed.
• The beneficiary shall be the foreign company, the recipient of the investment.  Loans are granted in any currency admitted to trading on the Madrid Foreign Exchange Market.
• Financing will have CESCE coverage, for political risks.