One of the financing facility provided by EXIM Bank is buyer credit. Buyer credit is the facility of loan financing that the bank or other financial institution offered to the importer, which is used to fund the purchase of capital goods or services and other large-scale projects. buyer credit is a very useful financing method in international trade, because foreign buyers rarely pay cash for large purchases, and very few exporters have the ability to provide their buyers with a large amount of long-term credit.
The buyer’s credit facilities involve banks that provide credit to importers, as well as export financing agencies that provide loans to the country in which the exporter is located. Since buyer credit involves multiple parties and cross-national legitimacy, it is usually only applicable to large export orders, and the minimum limit is several million US dollars.