National Office - Export Credit Office - How can it help?

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A snapshot of two of the Export Credit Office guarantees:

Short-Term Trade Credit Guarantee – guaranteeing repayment terms of less than 360 days

This is a new guarantee, launched in response to the global financial crisis. If you’ve had short-term trade credit insurance on creditworthy buyers cancelled by private trade credit insurers then this guarantee might help you out. It’s also available for exporters seeking short-term trade credit insurance on a single buyer and/or shipments of relatively low value. It may also be used where buyers have a letter of credit, but a bank is unable to confirm it.

Medium to Long-Term Export Credit Guarantee – guaranteeing repayment terms of greater than 360 days

This guarantee can be used by exporters of capital goods or larger contract services to offer creditworthy buyers extended repayment terms (one year or greater). It is typically suitable for deals of relative scale (e.g. over NZD 300,000) and the extended repayment term should not be longer than the economic life of the exported goods. As with the short-term trade credit guarantee, the NZECO works closely with the exporter’s bank to determine the bank’s ability to provide finance with the NZECO guarantee as loan collateral. Talk to the NZECO early if you are considering using this trade solution.

Check out www.nzeco.govt.nz for information on other NZECO products:

• Working Capital Guarantee - Providing access to additional finance from a participating bank without requiring additional security
• General Contract Bond Guarantee – Extension of an exporter’s bank bonding lines
• US Surety Bond Guarantee – Assisting New Zealand firms to provide surety bonds in the United States

The New Zealand Export Credit Office role is to fill a market gap and help maintain access to trade credit to assist global trade. Its range of guarantees help extend the capacity of banks and private trade credit insurers, assisting exporters or their buyer’s access credit and exporters mitigate risk. The Office welcomes enquiries about whether it can help exporters. Phone 04 917 6060 or email eco@treasury.govt.nz. Visit www.nzeco.govt.nz for more information.