Model CategoryFinancial / Buyer Credit
Payment MechanismBank Pays Supplier, Buyer Repays Bank
Time HorizonShort to Medium-Term
Typical SectorsEnergy, Infrastructure, Industrial Equipment, Export Projects
Strategic Applications
Capital-Intensive Equipment Projects
Buyer’s Credit enables buyers to **procure expensive equipment** from international suppliers without upfront capital constraints.
Cross-Border Export Projects
Facilitates **international contracts**, allowing exporters to receive payment promptly while buyers repay banks over agreed terms.
Project Suitability Analysis
Suitable for projects where **buyer liquidity is limited**, but suppliers need immediate payment, and bank financing can bridge the gap.
Risk Considerations & Mitigation
Risks include **buyer default, currency fluctuations, and bank credit exposure**. Mitigation involves **guarantees, insurance, and structured repayment plans**.
Comparable & Alternative Models
Supplier’s Credit · ECA Financing · Structured Finance · Project Finance
This platform supports Buyer’s Credit, enabling buyers and exporters to **execute high-value projects efficiently, access bank financing, and manage credit risk effectively**.